HALISTER: Italian Officials Said to Hold Meeting on Banks’ State Backing

Italian Officials Said to Hold Meeting on Banks’ State Backing

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
2103Z IM (Republic of Italy)
1021Z IM (Banca Popolare di Vicenza)
UCG IM (UniCredit SpA)
ISP IM (Intesa Sanpaolo SpA)

People
Pier Padoan (Republic of Italy)

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UUID: 7947283

HALISTER1: AUCTION PREVIEW: France, Spain Taps as Core Bonds Consolidate

AUCTION PREVIEW: France, Spain Taps as Core Bonds Consolidate

(Bloomberg) -- French 2031 bond on auction today looks attractive on the domestic curve, while Spain’s 2030 inflation-linked bond appears cheap as supply dynamics lend support, analysts write in client notes.
  • Spain taps SPGB July 2021, April 2026 and Oct. 2046 benchmarks for an estimated EU5b, SPGBei30 for EU0.25-0.75b at 10:30am CET
  • France taps May 2026 and May 2031 benchmarks together with the May 2025 off-the-run for up to EU8b at 10:50 CET
  • NOTE: Bund consolidation takes hold ahead of supply (see analysis here)
  • BofAML (Erjon Satko)
    • OAT May 2025 and May 2026 provide the highest carry and roll on French curve
    • May 2025 does not look particularly attractive on the curve as the Nov24-May25-Oct25 micro-fly is trading at ~10.7bps, lowest since June last year
    • Relative to Italy, Spain looks the cheapest in the 10y sector, with spread trading at 22bps, near YTD high
  • Citigroup (Puja Sawant)
    • SPGBei30 breakeven looks historically attractive vs BTPei32 and supply patterns are supportive
    • SPGBei30 has cheapened 4bps vs SPGBei24 over the last week; bond looks less appealing vs swaps
    • OAT May 2031 looks attractive on the domestic curve, in particular, 15y OAT vs 20y ahead of a possible new 20y in coming months and 15y RFGB, which have rallied significantly over the last month
  • Unicredit (Luca Cazzulani)
    • OAT May 2025 is relatively attractive compared to Oct 2025 (an old 30Y), based on yield and Z-spread analysis
    • SPGB Oct. 2046 looks attractive for an extension trade vs Oct. 2044
  • UBS (Nishay Patel)
    • 10y France is close to richer end of the 6-mo. range on 5s10s30s, mainly driven by falling yields
    • France 5s10s is at the flatter end of the 6-mo. range
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
3413Z GR (Federal Republic of Germany)

People
Erjon Satko (Merrill Lynch International)
Luca Cazzulani (UniCredit SpA)
Nishay Patel (UBS Global Asset Management Japan Ltd)
Puja Sawant (Citigroup Inc)

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UUID: 7947283

HALISTER1: Gilt July 2026 Cheap on Various Metrics Ahead of Auction: Citi

Gilt July 2026 Cheap on Various Metrics Ahead of Auction: Citi

(Bloomberg) -- Gilt July 2026 has cheapened on the domestic curve and underperformed cross-market and vs swaps, writes Citigroup strategist Puja Sawant, in a client note.
  • NOTE: DMO will re-open GBP2.5b of gilt 1.5% July 2026 at 11:30am CET for the first time since it was sold on Feb. 17
  • July 2026s has cheapened vs Sept. 2025s over the past month and offers a pickup of ~13bps
  • It has also cheapened on the gilt Sep22-Jul26-Dec30 yield fly post announcement
  • 10y gilts have underperformed vs bunds over the past 2-mos.
  • Bund scarcity could drive it wider still but gilts have started to richen in the last two days, perhaps reflecting Brexit risk and related 2Q growth concerns
  • 10y gilts have cheapened vs swaps but wouldn’t fade ahead of the EU referendum, especially with heavy gilt supply in April-May
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Puja Sawant (Citigroup Inc)

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UUID: 7947283

HALISTER1: Swiss Conducting 7 Probes in 1MDB, Petrobras Cases: Finma

Swiss Conducting 7 Probes in 1MDB, Petrobras Cases: Finma

(Bloomberg) -- Banks need to do more to combat money laundering, Mark Branson, head of financial regulator Finma, says at news conference in Bern.
  • Branson says he sees increased risk of money laundering in Switzerland
  • Majority of banks “doing the right thing” regarding compliance
  • Global finance system vulnerable to abuse, Branson says
  • Finma Chairman Thomas Bauer says at same conference that strong capital requirements are key
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
PETR4 BZ (Petroleo Brasileiro SA)

People
Thomas Bauer (Bauer AG)

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UUID: 7947283

HALISTER1: Korean Won, Taiwan Dollar, Ringgit Forwards Most Active on DTCC

Korean Won, Taiwan Dollar, Ringgit Forwards Most Active on DTCC

(Bloomberg) -- USD/KRW non-deliverable forwards accounted for 37.2% of total volume today, according to trades reported to DTCC; USD/TWD second-most active at 23.6%, USD/MYR third at 15.2%.
  • Notional amounts traded include:
    • $95m of USD/TWD at 32.386; matures May 12
  • Total volume was $6.3b as of 2:24pm HKT; global total yesterday was $57.0b, with USD/INR accounting for 16.3%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER: Death of Pfizer, Allergan Mega Deal No Great Loss for Ireland

Death of Pfizer, Allergan Mega Deal No Great Loss for Ireland

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
PFE US (Pfizer Inc)
AGN US (Allergan plc)
1266Z ID (Republic of Ireland)

People
Donald Trump (Trump Hotels & Casino Resorts Inc)
John McCain (United States Senate)

Topics
BGOV Taxation
Corporate Inversions

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UUID: 7947283