HALISTER1: Upward Pressure on EUR Short-End to Lead Curve Flattening: BNP

Upward Pressure on EUR Short-End to Lead Curve Flattening: BNP

(Bloomberg) -- Recent market and economic conditions suggest a prolonged status quo on ECB policy rates, leaving short-term (2y) rates exposed to upward pressure, BNP Paribas strategists including Patrick Jacq write in client note.
  • Maintain 2s10s OIS flattener
  • Receive the 4y OIS/BOR spread 1y fwd (receive the 4y swap (vs 6m) 1y fwd and pay the 4y OIS 1y forward); entry 29bp, target 22bp, stop at 33bp, carry 0.4bp per month
  • ECB’s upcoming TLTRO II program may also weigh on the 2-4y OIS area and expect demand at these operations to be very large, although more in gross than in net terms
  • This won’t fuel a decline in eonia rates but should support receiving interest in the 4y swap (vs Euribor) area
  • Expect 10Y recent trading range to hold near term before yields resume their decline in the summer
  • Risk of flattening pressure developing in coming weeks with the short end of the curve most exposed to upward pressure (repricing of ECB rate policy)
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2539Z GR (European Central Bank)

People
Patrick Jacq (BNP Paribas SA)

To de-activate this alert, click here

UUID: 7947283

HALISTER1: Singapore High Court Denies Bail for Ex-BSI Banker

Singapore High Court Denies Bail for Ex-BSI Banker

(Bloomberg) -- Singapore’s High Court denies bail for former BSI SA private banker caught up in probes related to 1Malaysia Development Bhd.
  • Yeo Jiawei, 33, faces total of 9 charges including money laundering and cheating his former employer and has been in remand since Apr. 15
  • High Court judge says Yeo likely to interfere with witnesses and act to destroy evidence
  • Prosecutors sought High Court review after objecting to district judge’s decision Thursday to allow Yeo out on bail
  • Prosecutor says Yeo received secret profits of at least $18m and tried to interfere with evidence by contacting no less than five witnesses
  • Yeo played central role in the Monetary Authority of Singapore’s decision to shut down BSI operations in the city-state and is involved in largest money laundering investigation in Singapore: prosecutor
  • NOTE: BSI Ordered Shut in Singapore as Swiss Launch Criminal Action {FIFW NSN O7O3E46JIJUQ }
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
0206021D MK (1Malaysia Development Bhd)
MASP SP (Monetary Authority of Singapore)
BBTG11 BZ (BTG Pactual Group)

People
Yeo Jiawei (BSI Bank Ltd)

Topics
Market Structure

To de-activate this alert, click here

UUID: 7947283

HALISTER: Protein’s Hot, Chocolate’s Not and Hershey Is Making Beef Jerky

Protein’s Hot, Chocolate’s Not and Hershey Is Making Beef Jerky

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
HSY US (Hershey Co/The)
4614Z US (Mars Inc)

People
Christopher Growe (Stifel Nicolaus & Co Inc)
Jared Koerten (Euromonitor Intl)
Michele Buck (Hershey Co/The)

To de-activate this alert, click here
To modify this alert, click here

UUID: 7947283