Indices widen as ‘cold turkey’ market dries up

The mood in bank funding markets was despondent on Wednesday, as Italy’s bond yields crept back above 7% and indices widened. Secondary flows were scant in senior unsecured FIG paper, and while RCI Banque — an issuer that syndicate desks generally treat as a corporate — launched a two year deal at 4%, bankers agreed that there was little chance of financial institutions coming to market.