EMISSIONS: UK Emissions May Rise By 9mtpa On Heathrow Expansion

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 +43.7bps (ref: 99.470 / 2.560%)
• Maturity: 20 February 2035
• Coupon: 2.95% 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+43.0bps (ref: 74.110 / 2.760%)
• ISIN: AT0000A2Y8G4

For both:

• JLMs: BofA Securities, Deutsche Bank, Erste Group, J.P. Morgan, Morgan Stanley and Raiffeisen Bank International
• Timing: TOE 14:37GMT / 15:37CET. FTT immediately

From market source / Bloomberg

Headlines crossing from Reuters on Italian PM Meloni. Our Political Risk team are looking for further details:

• "ITALY'S PRIME MINISTER MELONI: UNDER INVESTIGATION FOR EMBEZZLEMENT" RTRS
  "ITALY'S PRIME MINSITER MELONI: JUSTICE MINISTER AND OTHER GOVT OFFICIALS UNDER INVESTIGATION"
  "ITALY PM MELONI: INVESTIGATION RELATED TO THE CASE OF REPATRIATED LIBYAN POLICE OFFICER"

Some widening in the 10-year BTP/Bund spread following those headlines. Spread now back at 108bps (vs 107bps this morning). BTP futures have fallen some 15 ticks, now back at 119.00 at typing (-6 ticks today).

• US TSY 2Y FRN AUCTION: NON-COMP BIDS $29 MLN FROM $30.000 BLN TOTAL