EUR Swaps: Pressured after CPIs; ASWs narrow on supply

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Euro rates took a hit after German regional CPIs printed higher than consensus. Swap spreads are tighter as supply returns.

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  • Pressured after CPI; ASWs narrow on supply
  • New issues

    Pressured after CPI; ASWs narrow on supply
    Higher-than-consensus German regional inflation data hit the front-end of the euro curve and sent the Bund future sharply lower.

    Red Euribors lost up to 8bps after the data before recovering slightly and were last 5-6bps lower. Elsewhere, the Bund future remains under pressure and is testing session lows with losses of 70 ticks while the 10y yield has climbed by 7bps to 2.58%.

    “It’s taken a bit of a knock, but the reaction hasn’t been as severe last week’s rally when PMIs missed the target,” a dealer observed. German HICP printed 10bps above consensus at 0.4%mom/6.4%yoy and euro inflation swaps are 2-4bps higher led by the front end, with 5y5y at 2.58% (+1bp). 

    Elsewhere, the revival of new issuance continues with several corporates arriving and pricing multi-tranche deals. Bund asset swap spreads remain better offered and have tightened across the curve. Meanwhile, fast money accounts who were sellers a week or so ago have reportedly already begun to take profit on some short positions.

    Last prices vs 6mE, Schatz at 66.3bps (-0.2bp), Bobl at 67.6bps (-0.9bp), Bund at 63.0bps (-1.1bp) and Buxl at 28.1bps (-0.9bp).

    In basis, 3s6s is being marked slightly lower despite corporates active in euro new issues. For instance, 5y was last -0.15bp at 7.1bps while 10y was -0.15bp at 2.85bps.


    New issues

  • Engie SA is working on a four-part EUR deal. It is pricing EUR 4y around swaps +70bps, EUR 7.4y around swaps +110bps, EUR 11y around swaps +135bps and EUR 19y Green around swaps +180bps. Leads are BBVA, CA, Citi, IMI, Mizuho, MUFG, Natixis and SocGen (B&D).

  • Amprion GmbH is pricing €500m 5y around swaps +90bps and €500m 11y around swaps +130bps through BayernLB, Commerzbank, DZ, Helaba, ING (B&D), LBBW, SEB and UniCredit.

  • BT Group plc is pricing EUR long 9y around swaps +155bps through Mizuho, NatWest (B&D), SEB, SMBC Nikko and SocGen.

  • Philips NV is pricing €500m 8y around swaps +130bps through Citi (B&D), ING, Mizuho and Rabobank.

  • Telefonica SA is pricing EUR perp NC8 Green Hybrid around 7.125% through Barclays, BNPP (B&D), Caixa, CA, Mizuho, MS, Natixis, Sabadell, SMBC Nikko and UniCredit.

  • Eurofins Scientific SE is pricing EUR 7y around swaps +190bps through BayernLB, BNPP, Citi, Danske (B&D) and UniCredit.

  • Banco de Sabadell is pricing EUR 6y NC5 SNP around swaps +265bps through Barclays, MS, Nomura, Sabadell, UBS and UniCredit.

  • Sydbank AS is pricing €500m (max) 5y NC4 Green SNP around swaps +200bps through BNPP, Danske, JPM, LBBW and Nykredit.

  • Securitas Treasury Ireland is pricing €500m 5.5y around swaps +145bps through BBVA, CIC, Citi (B&D), Commerzbank, Danske, ING, SEB and UniCredit.

  • Ceska Sporitelna is pricing EUR 4.5y NC3.5 Green SNP around swaps +270bps through Erste (B&D), LBBW, Natixis, SocGen and Natixis.

  • Muenchener Hypo is pricing EUR short 3y Covered around swaps +3bps through DZ, DZ, LBBW (B&D), Natixis, NatWest and NordLB.

  • Nordea Bank is pricing EUR 3y NC2 SNP around swaps +90bps through BofA, JPM, Nordea, SocGen and UBS.