REFINING: Petrobras Revap Refinery Set for August Maintenance

New 10-year Feb-35 RAGB

• Reoffer price 99.596 to yield 2.997%.
• Spread set earlier at MS+48bps (guidance was MS+51bps area)
• Size: E5bln inc E250mln retained (MNI expected E4.5-5.0bln including E250-500mln retention)
• Books closed in excess of E35bln (inc E3.15bln JLM interest)
• HR 98% vs 2.50% Feb-35 Bund
• Maturity: 20 February 2035
• Coupon: 2.950% Long first
• ISIN: AT0000A3HU25 

1.85% May-49 Green RAGB tap

• Reoffer price 77.575 to yield 3.19%
• Spread set at MS+78bps (guidance was MS+80bps area)
• Size: E1.5bln inc E250mln retained (MNI expects E1.0-2.0bln)
• Books closed in excess of E15bln (inc E800mln JLM interest)
• HR 100% vs 1.25% Aug-48 Bund
• ISIN: AT0000A2Y8G4

For both:

• JLMs: BofA Securities, Deutsche Bank, Erste Group, J.P. Morgan, Morgan Stanley and Raiffeisen Bank International
• Timing: Hedge deadline 14:10GMT / 15:10CET

From market source / Bloomberg

• USDCAD has seen a reasonable pull back from earlier session highs of 1.4420 to 1.4369 over almost two hours and to fully unwind the push higher seen after the FT reported US Tsy Sec Bessent is pushing for new universal tariffs on US imports to start at 2.5% and rise gradually. It's since lifted ~15 pips quickly.
• The push lower stands out considering a step lower in US equity futures (and saw CAD briefly as joint top performer on the day along with the USD) but it’s still small compared to some of the swings seen since President Trump’s inauguration.
• Key directional triggers remain resistance at 1.4516 (Jan 21 high) and support at 1.4261 (Jan 20 low).
• Earlier today, the Globe & Mail reported Ottawa is planning pandemic-level relief for workers and businesses if Trump imposes tariffs.
• Tomorrow sees the BoC decision: https://media.marketnews.com/BOC_Preview_Jan2025_f128d669a0.pdf with the FOMC decision later on: https://media.marketnews.com/Fed_Prev_Jan2025_With_Analysts_c155c1a3c6.pdf

• +7,000 FVH5 106-15.75, post time offer at 0946:00ET, DV01 $291,000. The 5Y contract trades 106-16.25 last (-1.75).