Structures - USD
The curve is steeper and spreads are in as risk assets gain ahead of the Treasury refunding announcement. Banks look at SOFR. More Formosas print.
Step-up and fixed callables saw a pick up in activity at month end. ZC flows were nearly a shut out. Citigroup launched several CMS related notes.
ZC supply ebbed in lower this past week. CMS sees some prints. After a busy July, Citigroup sees long dated supply waning in August.
Zero-coupon callables were aplenty last week led by a $1bn 30y Formosa from the Government of Sharjah.
MTN issuance over the last 1-2 weeks has included a couple of century taps and a rare sterling callable.
ZC callable activity increased over the past week, led by SocGen's $355m 34y NC5 Formosa. BNS, BMO, DBS, Barclays added non-Fomosa ZCs.
ZC callables saw a percolation of new notes bubble up, led by BNP Paribas' $405m 30y NC5 Formosa. Non-formosa ZCs from BMO and BNS added to the total.
MTN activity slowed down in the last week of Q2. ZCs only saw one print from Barclays, SocGen launched a dual ranger. Fixed and step-up callables
AT&T came with a $1.05bn 30y NC5 fixed callable, MUFG sold a $500m 30y NC5 Formosa and BNPP and Barclays sold multiple $50m clips of 30y ZCs.
ZC callable activity was largely confined to $50m 30y clips this past week. SocGen and Jefferies launched new CMS steepeners.