Structures - USD
15y-20y ZCs from ADB, SocGen, HSBC and BNS along with 5y FRN Formosas from NAB and Korean Ocean were sold this past week. Citi sells an inverse FRN.
ZCs and Formosas saw a pick up in activity with four 15y to 20y ZCs and two FRN Formosas sold. CMS rangers see notes from ELM BV.
Hawkish noises from Japan and China dragged yields higher this morning with CPI in the US also looming.
BNP Paribas sold a $50m 20y NC7 in ZC callables while Citigroup and SocGen launched new CMS steepeners. BNPP examines Formosa trends.
Treasuries are steady after as-expected initial claims and PCE data. Banks look at structural shifts in the demand and supply of Formosas.
JP Morgan and Merrill Lynch sold 10y fixed callable Formosas. ZC callables went quiet after last week's haul. UBS sold a rare SOFR ranger.
A trio of Formosas printed this week, the first since end of July. 20y ZC callables see more business, some at higher IRRs.
USTs' early gains have faded with the curve now a touch flatter. Banks remain bearish. What are the Fed's inflation choices?
Overseas China Banking, African Development Bank and KDB launched $50m 20y ZCs while some new CMS activity popped up from JPM and SocGen.
DBS Bank and Credit Agricole led new ZCs (non-Formosa). CMS steepeners saw pick up in activity, with new notes from Merrill, BNPP, JPM and Barclays.