div class="content user-select-text" tabindex="0" aria-description="" aria-label="Sent by Copilot: ### EU Launches Dual-Tranche Bond Sale to Raise €10 Billion The European Union is launching a dual-tranche bond sale to raise up to €10 billion ($11 billion) as it seeks to secure the first funds of the fourth quarter. The bonds, maturing in December 2027 and October 2039, are expected to price at approximately 14 basis points over comparable swaps for the three-year security and around 68 basis points over for the 15-year note, according to sources. This method of debt syndication, while typically more expensive than auctions, allows the EU to quickly raise large sums and diversify its investor base. The bookrunners for the deal include Barclays Plc., BNP Paribas SA, Goldman Sachs Group Inc., LBBW, and Nordea Bank Abp, with a co-lead group comprising several other major banks. In related news, Bloomberg Index Services Limited (BISL) has initiated a client consultation on potentially reclassifying the EU from a "supranational" to a "treasury" issuer. This move, aimed at attracting a larger pool of investors, has already faced rejection from Intercontinental Exchange Inc. and MSCI Inc." Hungary's consumer price inflation has eased to 3 per cent in September, aligning with the central bank's target, according to the Budapest-based statistics office. This marks the lowest inflation rate since January 2021 and is an improvement from August's 3.4 per cent. However, the reading was slightly below the median estimate of 3.1 per cent in a Bloomberg survey. Despite the favourable inflation data, policymakers may face challenges in continuing monetary easing due to a weakening forint, increasing geopolitical risks, and expectations of rising prices for the remainder of the year. The central bank resumed interest-rate cuts last month, contributing to the forint's drop to an 18-month low against the euro. Deputy Governor Barnabas Virag indicated that the potential for further rate cuts is limited, particularly in light of upcoming geopolitical events, including the US presidential elections and escalating tensions in the Middle East. "The scope for decisions has definitely shifted towards pausing the rate cut cycle," he stated. Following the inflation report, the dollar declined by 0.4 per cent against the euro, reducing gains made after Virag's comments earlier in the week that had led to diminished rate-cut expectations among traders. The central bank has projected a rise in inflation, forecasting consumer prices to increase by 4.2 per cent annually by December while maintaining a target inflation rate of 3 per cent with a one percentage point tolerance band. Attribution: The Budapest-based statistics office, Bloomberg Subediting: Y.Yasser
