Halister News

(Bloomberg) -- Spain to sell 0.25% 01/2019, 1.95% 07/2030, 4.20% 01/2037 for EU3-4b, as well as I/L 2024 for 0.5-1b at 10:30am CET.

• Analysts are optimistic on the sale given recent RV concession, and rich repo levels

• NatWest Markets (Oriane Parmentier)
  • 07/2030s look cheap on the fitted curve, while the 2y issue appears rich
  • Recommends buying the 2030 bond vs 10s and 30s as a short term RV trade, enter at 39bps, target 44bps
  • Trade is consistent with long-end steepener view, supported by long-end paying from ESM and significant 30y issuance

• Santander (Edgar Da Silva)
  • All the SPGBs being tapped look attractive in RV terms; 2y offers the best opportunity to switch out of the immediately shorter tenor
  • 07/2030 is trading cheaper than fair value compared with shorter references, which are essentially rich
  • Sees good opportunity to extend out of 07/2030, which is around 4bps rich, and into the 01/2037, which sits around 4bps cheap

• Mizuho (Antoine Bouvet)
  • SPGBs offered some concession yesterday vs Italy; long- end in particular was in difficulty with the curve steepening sharply
  • Two longer-dated bonds are likely to have been reopened at the request of dealers, optimistic they will sell well

• BBVA (Jaime Costero)
  • 2y issue has lost some appeal recently after the recent underperformance of the 5-10Y sector
  • 07/2030 bond is rich pricing in the repo market, which might increase the appetite for this reference in the auction
    • However, cheapen vs 2028 and 2032 maturities, might be related to the expectations of a new 15Y benchmark, expected to come at some point at the end of February or beginning of March
  • The 01/2037 issue trades special in repo market, which should support its pricing and hence the appetite for the bond in the auction

(Bloomberg) -- Lack of BOJ action against rising 10-year JGB yield at 2pm Tokyo time triggered selloff in the debt, says Tadashi Matsukawa, head of fixed income investment at PineBridge Investments Japan.

• Investors will pay close attention to BOJ’s bond purchase operation tomorrow to see how the central bank reacts to the jump in 10-year yield, says Tokyo-based Matsukawa
• Can’t imagine there will be no reaction from BOJ should yen rally past 112 against the USD
• Japan 10-year yield rises as much as 2.5bps to 0.115%, first time above 0.1% since January 2016, when BOJ introduced negative-rate policy
• NOTE: BOJ could have announced a fixed-rate operation at 2pm Tokyo time

(Bloomberg) -- 4Q adj Ebit EU3.58b vs EU3.48b yr ago, Daimler says in statement; analyst est. EU3.74b.

• 4Q Rev. EU41b vs EU40.4b yr ago
• 2016 adj Ebit EU14.2b vs EU13.8b yr ago; est EU14.4b
• 2016 rev. rises 3% to EU153.3b
• Div. EU3.25/share; BDVD forecast EU3.50
• NOTE: Daimler forecast “slightly” higher 2016 earnings

To contact the reporter on this story: Tom Lavell in Frankfurt at tlavell@bloomberg.net To contact the editors responsible for this story: Chris Reiter at creiter2@bloomberg.net Tom Lavell

(Bloomberg) -- 3Q organic service revenue growth 1.7%; est 1.5%.

• 3Q rev. EU13.7b
• Confirms FY guidance; sees FCF of at least EU4b, organic Ebitda growth at lower end of 3%-6% range
• Says European growth continues as ARPU stabilizes; “confident” that co. will sustain commercial momentum