CEEMEA OPEN: Romania lands EUR/USD triple-part issue

Cash USTs modestly cheapened during the Asia-Pac session, with the short-end underperforming. Yields have flattened out towards the long-end. The 2-year yield is up 1-2bp.

This, after Trump delayed tariffs on Canada and Mexico for 30 days after discussions with their leaders, suggesting tariffs are being used as a negotiation tool rather than for a full-scale trade war. The US NEC director stated that Canada had misunderstood the tariff order.

Meanwhile, a 10% tariff on China has taken effect, but Trump indicated upcoming talks within 24 hours, warning that tariffs could be significantly increased if no deal is reached. China has since imposed new tariffs (10%) on US products and includes 15% levies on coal and LNGs.

In the latest Fedspeak, Goolsbee advocated for a more cautious approach to rate cuts, citing rising uncertainty stemming from Trump. Meanwhile, Fed's Bostic signalled a preference to hold off on easing for "a while."

Elsewhere, EGB debt futures are lower, with Mar25 OATs down 35-40 ticks after France PM Bayrou used a constitutional provision to force the adoption a 2025 budget bill, bypassing the lower house of parliament, which will likely trigger a no-confidence vote. Bunds are off around 45 ticks.

US and European equity future markets are in a sea of red. Asia cash equites are mixed, with Hang Seng +2%. Note, China has launched a probe into Google for alleged antitrust violations and has placed several U.S. companies on its "blacklist" of restricted entities.

Brent has continued to slide in early trade on Tuesday, now hovering just a touch above yesterday's 1mth low of $75.04/brl.

Fresh in the CEEMEA Pipeline

On the Radar

Romaniahas now priced a EUR/USD Reg S Cat 1 three-part issue in the following format:
- EUR1.4bn 5yr (March-2030) at m/s+305bps, in from the m/s+310bps guidance and m/s +330bps area IPTs.
- EUR1.4bn long 9yr (February-2037) at m/s+400bps, in from the m/s+405bps guidance and m/s+420bps area IPTs.
- USD1.25bn 12yr (February 2037) at T+300bps, in from the T_305bps guidance and T+325bps area IPTs.
- Final demand topped EUR4.8bn combined, excluding JLM interest, on the EUR books as well as USD2.6bn (also excluding JLM interest).
Limak Yenilenebilir Enerji A.S.one of the largest purely renewable energy generation players in Türkiye with 10 power plants constituting close to 1GWe of installed capacity across Hydro, Solar and Geothermal, commenced fixed income investor calls on Friday (January 31) and yesterday (February 03) to advertise an inaugural USD450mm Reg S 5.5NC2 (5.2yr WAL) Senior Amortising Green Note.
- LRE has mandated BofA Securities and J.P. Morgan as Joint Global Coordinators and Bookrunners, alongside Emirates NBD Capital as a Joint Bookrunner.
- Note, according to Captial Markets Board, the issuer received approval to sell up to USD600mn green bonds last week.
- The link to the net roadshow can be found here.

It’s worth noting that on behalf of The Govt. of the Emirate of Ras Al Khaimah, acting through the Investment and Development Office of Ras Al Khaimah (“IDO”),is holding an investor call later this week (February 07).
- IDO has mandated Abu Dhabi Commercial Bank, Citigroup, Emirates NBD Capital, First Abu Dhabi Bank, National Bank of Ras Al Khaimah, and Standard Chartered Bank.

Priced Deals

What to watch on Tuesday

In the US, JOLTs job openings (15GMT) take the spotlight, seen falling to 8000k in December from 8098k prior, which backs the view that the labour market is on a cooling trend. If quits keep falling (1.9% in November), wage pressure should ease further. Factory orders are seen declining -0.7% in December from -0.4%. Durable goods orders (final) are seen unchanged at -2.2% m/m. Prelim core-shipments were an impressive +0.6% m/m.

Central bank speakers to talk include the ECB's Villeroy (13.30GMT) and the Fed's Bostic (16GMT) and Daly (19GMT).

Wider market Sentiment

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