PERU: President Boluarte Formally Announces Date For 2026 Elections

• Dr Swati Dhingra has seen her term as an external MPC member extended by the standard 3 years to 8 August 2028. This was generally expected (most external members do renew their terms) but it's never certain until the confirmation. Her first term had been due to end in August this year. External MPC members can serve two 3-year terms.
• Given that she is one of (if not) the most dovish MPC members, it reduces the tail risk that she would be replaced by a more hawkish member and shift the balance of the MPC through H2-25.

• Treasuries are trading moderately weaker, low end of narrow range as rates scale back a small portion of Friday's risk-off & data-driven rally.
• Treasury March'25 10Y futures are currently -5.5 at 109-16.5 (109-16L/109-21H), inside technical levels: initial resistance above at 109-24/110-00 (High Feb 21 / 7 and the bull trigger), support well below at 108-21.5 (Low Feb 19). 10Y yield +.0058 at 4.4371%, curves flatter: 2s10s -1.134 at 21.770, 5s30s -.378 at 40.051.
• Heavier volume despite Japan out on extended holiday weekend, ongoing quarterly futures roll from Mar'25 to Jun'25 (June takes lead this Friday), helps push TYH5 to 420k so far.
• Limited data today with regional Fed reporting (prior, est): Chicago Fed Nat Activity Index (0.15, -0.05) at 0830ET, Dallas Fed Mfg Activity (14.1, 6.4) at 1030ET. No scheduled Fed speakers.
• The upcoming US economic calendar is backloaded, with the second release for Q4 national accounts on Thursday before the January PCE report on Friday. Real GDP growth is seen confirming what was at the time a softer than expected 2.3% annualized in Q4, whilst there will also be a first estimate for real GDI growth after 2.1% in Q3.
• US Treasury auctions resume $76B 13W & $68B 26W bill auctions at 1130ET, $69B 2Y Note auction (91282CMP3) at 1300ET.
• Cross asset update: Crude mildly higher (WTI +.08 at 70.48; Gold climbing 12.72 at 2948.75; Bbg US$ index little lower at 1285.86 (-.037).

"The KINGDOM OF SPAIN has mandated Barclays, Credit Agricole CIB, Goldman Sachs Bank Europe SE, HSBC, Nomura, and Societe Generale for a new Obligacion del Estado syndicated 15-year Euro benchmark maturing on 31st January 2041. The transaction will be launched in the near future subject to market conditions."
From market source.

• We wrote in our EGB Issuance, Redemption and Cash Flow Matrix that we looked for a Spanish syndication this week with either a long 15-year (2041) or 20-year maturity.
• We pencil in a wide E5-10bln range for the transaction. The lower end of the range in line with previous issues, the upper end more consistent with the large syndications we have seen both in Spain more recently and in EGBs more generally this year.