Dollars grind tighter, have euro fears retreated?

The compression in spreads is not deterring dollar buyers, who continue to pounce on SSA assets despite the meagre yields on offer. Finland’s five year at mid-swaps flat attracted over $3bn of orders and the sovereign priced $2bn at less 1bp. This is the tightest five year print of the year but still generous, say some bankers, who think the deal could have been 5bp tighter. Meanwhile, Greece’s second monthly T-bill auction looked a success compared to its last outing. Read EuroWeek for analysis of what the auction says about Greece’s bond market rehabilitation and to see how Ireland has performed now the spotlight has shifted temporarily elsewhere.