Queensland defies Swiss market turbulence
While the Swiss National Bank stabilised the soaring franc this week with its third intervention in as many weeks, the central bank’s rate cut on August 3 continued to exacerbate deteriorating bond market conditions. Only two new issues emerged all week, although the one from Queensland Treasury Corp (QTC) was notable for being its first appearance in Switzerland for 30 years.
The market remained virtually shut as swap rates dropped by up to 25bp to record lows, leaving bankers struggling to launch transactions with yields in negative territory at the short end two year mid-swap rates were quoted at -0.1% on Thursday.
Market conditions were worst for foreign borrowers
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