MEXICO: Peso Steady as Official Trade Discussions Begin, Banxico QIR Due
Feb-19 11:05
- Mexico’s economic calendar remains busy for the rest of the week. Today we will receive the latest quarterly inflation report from the central bank, before Thursday’s release of the Banxico minutes. Additionally, retail sales and the final reading of Q4 GDP are scheduled across Thursday and Friday’s sessions.
- USDMXN trades steady today, having dipped to a fresh recent low of 20.2018 in early European trade. A negative session today would produce a losing streak of seven sessions for the pair, as negative sentiment for the dollar and a lower level of tariff related noise assists the renewed optimism for the peso.
- Economy Minister Marcelo Ebrard and his team of officials are visiting Washington, and discussions with US officials are expected to take place between Wednesday and Friday. Ebrard says Mexico is looking to present ideas to the US side about strengthening trade integration between the two countries and to learn first-hand the trade objectives of President Trump’s administration.
- For USDMXN, spot continues to narrow the gap to 20.1343, the Jan 24 low. A clear break of this level would highlight a potential reversal, opening 19.7618, the Nov 7 low.
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Historical bullets
EFSF ISSUANCE: New 3-year / new 10-year: Final terms
Jan-20 11:04
New long 3-year:
- Spread set earlier at MS+19bp (guidance was MS + 21 bps area)
- Size: E3bln (MNI expected E3-5bln)
- Books closed in excess of E27bln (inc E1.5bln JLM interest)
- Maturity: 27 July 2028
- Coupon: Short first
- ISIN: EU000A2SCAR0
New 10-year:
- Spread set earlier at MS+50bp (guidance wasMS + 53 bps area
- Size: E4bln (MNI expected E3-5bln)
- Books in excess of E34bln (inc E1.5bln JLM interest)
- Maturity: 29 January 2035
- Coupon: Long first
- ISIN: EU000A2SCAS8
For both:
- Total size: E7bln (MNI expected E7-8bln)
- Settlement: 27 January 2025 (T+5)
- Bookrunners: BARCLAYS / BNP / JPM (DM/B&D)
- Timing: Allocations and pricing to follow
From market source
EURIBOR OPTIONS: Large call condor
Jan-20 10:58
Very active Option market this Morning, in Rates as Well as in Equities. Latest Euribor:
- ERM5 98.125/98.25/98.375/98.50c condor, bought for half in 16k.
EURIBOR OPTIONS: Call Fly buyer
Jan-20 10:56
ERM5 97.8125/97.9375/98.0625c fly, bought for 2 in 8k.
