FINANCIALS: Raiffeisen Bank - Sr-Non pref 28s vs 29's

• Guidance: 0.125% Aug-48 linker (GB00BZ13DV40) + 1.0/1.5bps
• Size: GBP benchmark
• Maturity: 22 September 2049
• ISIN: GB00BT7J0134
• Coupon: 1.875%, long first
• Settlement: 12 March 2025 (T+1)
• JLMs: BofA Securities, J.P. Morgan, Lloyds Bank Corporate Markets (B&D/DM), and UBS Investment Bank
• Timing: Books open, pricing later today (MNI expects books to close at 10:00GMT)

From market source

The 10-Year gilt/Bund spread is on track for its first sub-180bp close since September, with German fiscal expectations continuing to drive cross-market moves after the Greens raised hopes of an accord being struck this week.

• Next support of note in the spread located at 175bp, which protects the 76.4% retracement of the July ’24 to December ’24 widening (174.5bp).
• The speed of delivery (expected to be skewed into H225), size and maturity mix of any fiscal loosening-driven issuance out of Germany will be key for the spread over a multi-month horizon, as will the evolution of UK fiscal policy, given the erosion of already limited fiscal headroom.

Fig. 1: 10-Year Gilt/Bund Spread (bp)

Source: MNI - Market News/Bloomberg

• Nearly a 100 pips range for the EURUSD as it extends and gather momentum above 1.0900, and as already mentioned, next immediate resistance comes at 1.0937 High Nov 5 / 6 2024.
• Cable on the follow targets Yesterday's high of 1.2947 High Mar 10.
• Although the Yen is steady against the Dollar, the Japanese Yen extends some losses versus the EUR, GBP and AUD.
• Gold firms above $2900.00, now $2909.00, with the next area of interest coming at $2930.3, the 7th March high.