EURGBP TECHS: Pivot Resistance Remains Intact

RRP usage inches up to $183.669B this afternoon from $178.800B on Friday. Compares to $98.356B on Friday, December 20 - the lowest level since mid-April 2021. The number of counterparties rises to 51 from 48.

A new survey from Gallup has found that the reputation of US leadership remains fragile, across NATO member countries, despite US President Joe Biden’s attempt to shore up the transatlantic partnership. 

• Gallup: “In the last year of Biden’s presidency, the median approval of U.S. leadership across NATO’s 30 member countries was 35%, the lowest of his term. Median disapproval was 51%, the highest of his term.
• “Historically, these ratings were still relatively better than those under Trump or during George W. Bush’s last two years in office. However, ratings under Biden were worse than those during most of the Barack Obama administration, when approval averaged 46% and disapproval averaged 26%.”
• The survey suggests, ahead of Trump's return to the White House on January 20, that Biden's focus on multilateral foreign policy has not wholly repaired tensions within NATO, particularly regarding disagreements in policy towards the Middle East and Ukraine.
• The alliance will be tested further in the coming weeks, with Trump previewing a return to his hardline first-term rhetoric on alliance contributions, calling on NATO members to hit 5% of GDP in defence spending - more than double the current benchmark target.   

Figure 1: Approval of the Leadership of the United States, NATO Member Countries

Source: Gallup

• Date $MM Issuer (Priced *, Launch #)
• 01/13 $2.5B #Standard Chartered $1B 4NC3 +105, $500M 4NC3 SOFR+124, $1B 11NC10 +143
• 01/13 $2B #Deere $1.25B 10Y +68, $750M 30Y +75
• 01/13 $1.5B #CBA 5Y SOFR+69
• 01/13 $1B *EBRD 5.5Y SOFR+42
• 01/13 $1B #Plains All American 10Y +120
• 01/13 $750M #Ares Strategic 7Y +175