CREDIT SUPPLY: Volvo IPT

New 10-year BTP:

• Tranche size: EUR Benchmark (MNI expects E10bln)
• Guidance: 3.85% Feb-35 BTP +9Bps Area
• Maturity: 1 August 2035
• Coupon: Semi-annual, act/act, short first

New 20-year Green BTP:

• Tranche size: E5bln (WNG)
• Guidance: 4.45% Sep-43 BTP +8bps Area
• Maturity: 30 April 2046
• Coupon: Semi-annual, act/act, short first

For both:

• Settlement: 15 January, 2025 (T+5)
• Bookrunners: SIENA, BNPP (B&D), Citi, CA-CIB, NatWest Markets, UniCredit
• Timing: May price today

Details as per Bloomberg

• US Treasuries are seeing a pick up in volumes to the sell side, getting dragged lower by Europe.
• The Dollar is finding a broader bid on the follow, with US Yield elevatged overall, EUR, GBP fell to their respective lows against the Greenback.
• Main focus target in the 10yr Yield is at 4.7351%, the 2024 high, while in G10 FX, the Dollar has pared some of its overnight losse to edge in the green against most G10.

Gilt futures off opening highs, with core global FI markets seeing some light selling pressure in recent trade.

• Contract last +10 at 91.50.
• Bearish technicals intact, initial support at yesterday’s low (91.31), while initial resistance comes in at yesterday’s high (92.13)
• Yields 1-2bp lower across the curve, light bull steepening.
• 10s last 4.67%, focus on 4.70% next, yesterday’s high was 4.687%.
• 30s topped out at 5.25% yesterday, which represents the highest level seen since ’98.
• 10-Year gilt/Bunds ~2bp tighter on the day, last ~216bp.
• There isn’t anything of note on the UK data calendar today, which will leave focus on swelling global supply and U.S. data.
• On the supply front, the DMO will return to market today, looking to sell GBP4.25bln of the 4.375% Mar-30 gilt.
• This morning has already seen the DMO confirm a syndicated re-opening of the 4.375% 2040 gilt, planned for w/c January 20 "subject to demand and market conditions".