MEXICO: USDMXN Extends Gains As Trade War Fears Mount, Consumer Confidence Due
Apr-04 10:55
- USDMXN is now up by 1.7% ahead of the NY crossover, after the recent headlines that China will impose an additional 34% tariffs on US goods, and associated downside momentum for major equities, has weighed further on sentiment.
- As noted, the drivers for a potential extension of today’s moves could lie in both the NFP report as well as the appearance from Fed's Powell later today.
- On the domestic front, attention will be on President Sheinbaum’s press conference from 1430BST(0930ET) for any further comments on tariffs. Amid uncertainty for the autos sector, Economy Minister Ebrard said overnight that Volvo will increase its investment in Mexico’s Nuevo Leon State to $1bn from $700mn.
- Meanwhile, the suspension of activities at the Stellantis plant in Toluca is due to start today, following the imposition of US levies on the automotive industry.
- On the data front, March consumer confidence data are due at 1300BST(0800ET), with consensus for a further deterioration in sentiment to 46.0, from 46.3, which would mark the lowest reading since Oct 2023.
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EGB SYNDICATION: German 30-year syndication: Launched
Mar-05 10:53
- Spread previously set at 2.50% Aug-54 Bund (DE000BU2D004) MID +3.25bp (guidance was +4bp area)
- Size: E6bln (inc E1bln retained) (same as last year).
- Books closed in excess of E36bln (inc E1.95bln JLM interest). Smaller than the E74bln and E46bln seen on the two 30-year syndications in 2024.
- Maturity: 15 August 2056
- Coupon: 2.90%, long first
- Settlement: 12 March 2025 (T+5)
- ISIN: DE000BU2D012
- Bookrunners: Barclays / BofA / Commerzbank / Deutsche Bank / Morgan Stanley (DM/B&D)/ NatWest
- Timing: Allocations and pricing to follow
From market source / MNI colour
JPY: Couple of Yen Exchange traded Options
Mar-05 10:48
- JPYUSD (expiry Friday) 64p sold at 0.025 and 0.020 in ~1.37k (could be closing).
- JPYUSD 65.25p, sold at 0.05 in 2.1k, looking for Yen bid, suggest new short term position, playing NFP.
BONDS: German Yields remain elevated
Mar-05 10:34
German longer end Yields have led rallies Yesterday and into Today, both the 10yr and the 30yr have printed their highest levels since November 2023.
Looking at the shorter end 5s (Bobl), the Yield has managed to break above the February high but is still some way short of the January 2025 high of 2.463%, which was also its highest printed level since mid November 2024.
For the 2yr (Schatz) Yield, the February high comes at 2.187%, while most would be looking for resistance at 2.20% initially.
Today, reference 106.725:
- 2.187% = 106.685.
- 2.200% = 106.665.
