MEXICO: MXN in Consolidation Mode as March 01 Deadline Looms
Feb-13 13:04
- Following the significant volatility for the Mexican peso on Feb 03, USDMXN has since entered consolidation mode, broadly respecting a 20.40-20.70 range throughout. While tariff headlines continue to have an impact on intra-day MXN sentiment, moves have remained relatively contained given the ongoing discussions between US and Mexican administrations.
- Analysts have been impressed with Sheinbaum’s approach so far, with the Wall Street Journal publishing an article describing the talks between her and Trump on Feb. 3. Sheinbaum -- who alternated between an interpreter and speaking English to make an emphatic point -- stayed on message, people familiar with the matter said. Sheinbaum parried Trump on trade, drugs and migration in ways that caught his attention without escalating into a disagreement.
- President Sheinbaum’s daily press briefing at 1330GMT/0830ET will garner attention as usual, especially given the domestic economic data calendar remains very quiet for the rest of the week, with same-store sales and nominal wage data tentatively scheduled. Mexico is expected to sell the following floating bonds in an auction on Thursday:
- MXN1b 2030 floating bonds
- MXN1b 2028 floating bonds
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GILT PAOF RESULTS: GBP183.075mln of the 1.25% Nov-54 linker sold.
Jan-14 13:03
- GBP250.0mln had been available.
- This leaves GBP13.933bln of the linker in issue.
STIR: Repo Reference Rates
Jan-14 13:01
- Secured Overnight Financing Rate (SOFR): 4.29% (-0.01), volume: $2.211T
- Broad General Collateral Rate (BGCR): 4.28% (-0.01), volume: $852B
- Tri-Party General Collateral Rate (TGCR): 4.28% (-0.01), volume: $837B
- (rate, volume levels reflect prior session)
US TSYS: Early SOFR/Treasury Option Roundup
Jan-14 12:43
Mixed SOFR/Treasury options flow reported overnight, leaning towards downside put structures in the lead up to this morning's PPI data. Underlying futures modestly firmer but scaling off of early London session highs. Projected rate cuts through mid-2025 continue to retreat, current vs. late Friday levels* as follows: Jan'25 steady at -0.7bp, Mar'25 steady at -4.9bp, May'25 -9.0bp (-8.4bp), Jun'25 -16.5bp (-16.3bp), Jul'25 steady at -18.7bp.
- SOFR Options:
- 3,200 SFRJ5 95.62/95.75/95.81/95.88 broken put condors
- 3,200 SFRU5 95.87 puts vs. 95.87/96.12 call spds
- 7,000 SFRJ5 95.50/95.56 put spds ref 95.835
- 2,000 SFRM5 95.37/95.62 put spds ref 95.835
- -3,500 SFRU5 95.00/95.75 2x1 put spds, 12.0 ref 95.885
- Treasury Options:
- 1,100 USJ5 110/112/114 put flys
- 2,250 FVG5 106.25/106.75/107.50 broken call flys
- 2,000 TYJ5 107/107.5 put spds ref 107-14
- 4,500 TYG5 107 puts
- +10,000 TYG5 108 calls, 16 vs. 107-15/0.32%
