Halister News

(Bloomberg) -- USD/THB rising for first time in seven day following central bank’s decision to hold official rate at 1.5%.

• BOT says baht strength not conducive for recovery and they are ready to use policy tools if needed; also says that the economy faces risk from the global economy
• USD/THB up 0.4% to 34.882; hits 34.885 session high
  • Resistance seen at 10-DMA currently 34.909, followed by 21-DMA at 35.005
• THB 5-year interest-rate swaps up 1 bp to 1.735%

(Bloomberg) -- Germany to sell 0% 09/2018 for EU5b at 11:30am CET; yields ~9bps above prior 2Y sale at -0.60%, analysts generally optimistic on the sale.

• Citi (Aman Bansal)
  • Recent Schatz auctions have registered strong auction demand recently, despite record low yield levels
  • In RV, 2Y sector is cheapest on German curve vs fitted curve, 1s and 3s look relatively rich on the same metric, can be seen on 1s2s3s fly, which has cheapened over past six months

• Unicredit (Michael Rottman)
  • Last two Schatz auctions went well, average yield of -0.69% in July, -0.55% in June
  • Hard to see value at current levels at around -60bps unless view is for further cuts in depo rate, which is doubtful

• Commerzbank (David Schnautz)
  • This will be first auction without new record low yield as current valuations suggest yield around -60bp, compares to -69bps when Schatz 06/2018 last reopened
  • Auction should go smoothly due to recent sell-off, lack of comparable supply pressure, likely BOE easing tomorrow which may prompt expectations of fresh ECB stimulus

(Bloomberg) -- Spain July services PMI est. 55.2, prev 56.0.

• Spain July composite PMI est. 54.5, prev 55.7

Economic Release Details: {BTRR1DAY Index ECOD} --TONY JORDAN

(Bloomberg) -- Turkish court orders access blocked to news about an Italian probe into President Recep Tayyip Erdogan’s son Bilal on two websites, gazeteport.com and diken.com, according to Cumhuriyet newspaper.

• Bilal Erdogan, who was studying for a doctorate in Bologna, has been subjected by Italian authorities to a money- laundering probe
• NOTE: Renzi Takes a Swipe at Erdogan in Row Over Turkish Leader’s Son

--DAVID WHITEHOUSE