CEEMEA OPEN: May draws to a close
By Gavin SandhuShareshare
30th May, 2025
- Cash USTs richened during Asia-Pac activity before cheapening ahead of Eurex, leaving the curve mixed and close to flat ahead of the PCE report. 10s dipped to 4.4101% at worst before climbing back to 4.4240%. That's just 2bp above the 100-day MA. 30s are unchanged at 4.9151% after being as high as 5.031% Thursday.
- US equity future markets are a sea of green, with Nasdaq minis leading the way lower (-0.20%). European equity futures point north. Asia cash equity markets are in the red, with both Nikkei and Hang Seng down over 1%. Note, US Treasury Secretary Bessent said trade talks with China are “a bit stalled,” and may require a call between Trump and Xi Jinping to reach a deal.
- Brent fell to a lower-low of $63.75/brl during Asia-Pac ahead of the expected hike in output from OPEC+ at the weekend. Oil has since pulled itself up a tad to $63.95.
- Gold has slipped to a higher-low of $3290 after Israel agreed to a US-backed ceasefire proposal for Gaza, which is now being reviewed by Hamas. The deal reportedly includes a 60-day pause in fighting and the resumption of aid flows through UN agencies. But Hamas will probably reject the proposal because it does not include a commitment to end the war.
- In the headlines, a federal appeals court temporarily reinstated Trump's tariffs, one day after the Court of International Trade ruled the president lacked authority to impose them. The Trump administration immediately appealed and plans to seek Supreme Court "emergency relief" by Friday.
Fresh in the CEEMEA Pipeline
- No new additions to the pipeline.
Priced Deals
Date | Issuer | Ccy | Amount (m) | Coupon | Maturity | Yield | Spread | IPTS to Pxd | Book size (m) | Coverage | NICs |
29-May | Boubyan Sukuk Limited | USD | 500 | 4.973 | 05-06-2030 | 4.973 | T+95 | -25.0 | 1700 | 3.40 |
On the Radar
- The pipeline has emptied as this week/month comes to a close. This week’s issuance was notably slower than last weeks, although we had expected that following public holidays in the US/UK on Monday and as Ascension Day was observed in parts of Europe on Thursday. Concerns over the US fiscal outlook have also impacted investor appetite.
- Boubyan Bank K.S.C.P. has now priced its USD500mn Reg S 5yr bmk Senior Unsecured Sukuk offering at T+95bps, in from the T+130bps area IPTs. The deal attracted over USD1.7bn in final demand, excluding JLM interest.
What to watch on Friday
Key data:
- US April PCE report (12.30GMT) and May’s final Michigan expectations (!4GMT).
Key events:
- ECB's Muller (7.30GMT), Panetta (8.30GMT) and Vujcic. From the Fed, Daly (20.45GMT) and Goolsbee are on tap.
Wider market Sentiment
- USD Index at 99.54
- UST 2yr/10yr at 3.943%/4.426%
- Bund 2yr/10yr at 1.765%/2.512%
- Brent at $63.96/brl
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