Cades takes tricky 10 year versus Treasuries

Cades issued a 10 year Eurodollar deal this week. It was not only a rare maturity, but was also notable for being marketed against US Treasuries rather than swaps. To encourage investors the agency took on unusual amounts of swap risk. Will the deal draw other SSAs into this difficult but desirable sector of the curve? Meanwhile KfW stormed into the market with a $4bn five year at m/s less 1bp and EDC is marketing a $1bn (no grow) five year at less 3bp. Read EuroWeek on Friday to assess the full market reaction.