MEXICO: Peso Displaying Relative Resilience to Broader Risk Off Tone
Feb-07 16:49
- In the aftermath of the latest tariff ‘developments’, it is the Euro which remains under pressure in G10, while the Japanese yen continues to outperform. USDMXN has traded up to a new session high, but remains comfortably off the Wednesday highs located just above 20.70, as the peso is displaying relative resilience to the latest bout of risk off sentiment in global markets.
- As noted above, it is likely because these headlines, if legitimate, should likely not include Mexico where tariffs are not expected to be implemented until March 01, and only if the US/Mexico working groups cannot come to a broader trade accord.
- It is worth noting, MNXJPY is down 1.10% and is approaching a cluster of daily lows around 7.29, of which a break could setup the potential for a more substantial move south.
- CIBC reiterate that USD/MXN’s short-term risks are biased to the upside (Q1 forecast remains at 20.70) as the market awaits the outcome of Trump’s tariff saga.
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EGB SYNDICATION: Italy Dual-Tranche: New 10-year / New 20-year Green: Priced
Jan-08 16:45
New 10-year - record book for a single tranche
- Reoffer: 99.577 to yield 3.733%
- Size: E13bln (MNI expected E10bln)
- Spread set earlier at Feb-35 BTP + 7bp (guidance was + 9bps area)
- Benchmark price ref: 101.84 / 3.663%
- Books in excess of E142bln (ex JLM interest) - record single tranche book
- Maturity: 1 August 2035
- ISIN: IT0005631590
New Green 20-year
- Reoffer: 99.465 to yield 4.181%
- Spread set at 4.45% Sep-43 BTP +5bp (guidance was + 8bps area)
- Benchmark price ref: 104.66 4.131%
- Books in excess of E127bln (ex JLM interest) pre-rec
- Size previously set: E5bln WNG
- Maturity: 30 April 2046
- ISIN: IT0005631608
For both:
- Bookrunners: Banca Monte dei Paschi di Siena, BNP PARIBAS (DM/B&D), Citi, Crédit Agricole CIB, NatWest Markets and UniCredit
- Settlement: 15 January 2025 (T+5)
- Timing: Price 16:22GMT / 17:22CET, FTT immediately
- Record dual-tranche book size
From market source
ITALY AUCTION PREVIEW: On offer next week
Jan-08 16:43
MEF has announced it will be looking forward to sell the following at their auction next Monday, January 13:
- E2.50-2.75bln of the 2.70% Oct-27 BTP (ISIN: IT0005622128)
- E2.75-3.00bln of the 3.15% Nov-31 BTP (ISIN: IT0005619546)
MEF has cancelled the 15y+ BTP line on the back of today's syndication.
EGB SYNDICATION: Italy Dual-Tranche: New 10-year / New 20-year Green: Priced
Jan-08 16:40
New 10-year - record book for a single tranche
- Reoffer: 99.577 to yield 3.733%
- Size: E13bln (MNI expected E10bln)
- Spread set earlier at Feb-35 BTP + 7bp (guidance was + 9bps area)
- Benchmark price ref: 101.84 / 3.663%
- Books in excess of E142bln (ex JLM interest) - record single tranche book
- Maturity: 1 August 2035
New Green 20-year
- Reoffer: 99.465 to yield 4.181%
- Spread set at 4.45% Sep-43 BTP +5bp (guidance was + 8bps area)
- Benchmark price ref: 104.66 4.131%
- Books in excess of E127bln (ex JLM interest) pre-rec
- Size previously set: E5bln WNG
- Maturity: 30 April 2046
For both:
- Bookrunners: Banca Monte dei Paschi di Siena, BNP PARIBAS (DM/B&D), Citi, Crédit Agricole CIB, NatWest Markets and UniCredit
- Settlement: 15 January 2025 (T+5)
- Timing: Price 16:22GMT / 17:22CET, FTT immediately
- Record dual-tranche book size
From market source
