Following the Irish debt
ByFollowing the Irish debt auction which saw solid demand albeit with
higher yields, [IRELAND'S DEBT OFFICE] (NTMA) is quick to point out that
investor appetite for its bonds has remained firm despite the current
difficult market conditions. NTMA plans to hold its next debt sale on 19
Oct as outlined in the initial full year's issuance schedule. Turning to
data, Irish Q2 ILO unemployment rate rose to 13.6% vs 12.9%, with the
number of jobless deteriorating in 10 out of 14 sectors. Note,
construction unempl fell 19.4% y/y. Aug PPI rose 0.2% m/m and 0.5% y/y
from -0.6%/0.9% prev, while turning to [SPAIN], the Jul trade deficit
narrowed to Eur 4.3bn from Eur 4.7bn. The Irish 5y [CDS] is 13bp tighter
on the day, at 425bp (as per Reuters), while Spain is 7bp narrower on the
day, at 230bp. Clearly, the auctions have had a positive impact on debt
markets with the 10Y yld spreads vs Bunds also narrowing in the periphery.
10:00 GMT – [STRONG LOONIE TO KEEP INFLATION SUBDUED] Usd/Cad well ensconced in
1.01 to 1.0680 range since May with no sign of a significant break
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