MEXICO: USMCA Review Remains Scheduled for 2026
Feb-06 16:31
- We noted earlier that Mexico’s Deputy Economy Minister for Trade Luis Rosendo Gutierrez made comments following a meeting between officials in the White House on Wednesday. This was broadly expected following the agreement to setup working groups to discuss bilateral trade, security and migration.
- The minister said the beginning of public consultations ahead of the USMCA review had been discussed. Importantly the review of the trade pact remains scheduled for 2026, dispelling any immediate concerns of an earlier renegotiation.
- "For now, we have not yet started talking about tariffs," Gutierrez said. "We were very well received from all the economic areas and the idea is to start working next week with a permanent exchange of information."
- Analysts have pointed out that so far business confidence has held up remarkably well in Mexico, but it could be expected to see a deterioration from February onward that may capture the 25% tariff noise more clearly, subject to how discussions between the administrations develop.
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US TSY FUTURES: BLOCK: Mar'25 5Y Sale
Jan-07 16:27
- -5,000 FVH5 105-29.5 (-8), post-time bid at 1120:10ET, DV01 $210,000. The 5Y contract trades 105-29 last (-8.5).
FED: US TSY 42D AUCTION: NON-COMP BIDS $434 MLN FROM $85.000 BLN TOTAL
Jan-07 16:15
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EGB SYNDICATION: New 30-year SLOREP: Priced
Jan-07 16:02
*Now including spot ref for the benchmark
- Size set earlier: E1bln (MNI expected E1.0-1.5bln)
- Spread set earlier at MS+128bp (Guidance was MS+140bps area then MS+135bps area)
- Reoffer price 99.10 to yield 3.548%
- Books above E2.1bln (inc E410mln JLM interest)
- Maturity Date: 14 April 2055
- Coupon: 3.5%, annual, act/act, long first
- HR: 93% vs 2.50% Aug-54 Bund (95.995 / 2.697%)
- Settlement Date: 14 January 2025 (T+5)
- Joint Bookrunners: Deutsche Bank, Erste Group, Goldman Sachs Bank Europe SE, HSBC, J.P. Morgan (B&D) and OTP Banka Slovenia
- ISIN: SI0002104873
- TOE: 15:05 UKT / 16:05 CET
- FTT: 15:20 UKT / 16:20 CET
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