Euros flavour of the week for SSAs

Increased risk aversion in the markets this week has benefited a whole raft of SSA issuers, most of which are concentrating on euros where a back-up in yields and robust redemption flows have supported strong books. A rare sighting of Republic of Finland with a Eu4bn five year was a clear highlight, although the issuer had to price in the middle of the mid-swaps less 22bp-24bp guidance to achieve a Eu4.5bn book. Demonstrating the appeal of German state issuers, KfW posted another strong result, issuing Eu5bn of a seven year benchmark priced at mid-swaps less 2bp and Land Hesse garnered a book well above its target Eu1bn for a new 10 year in a matter of hours. Meanwhile Asfinag extended its maturity profile with a Eu1.25bn 15 year and the European Union is issuing Eu1.15bn of a seven year for on-lending to Romania. Read EuroWeek on Friday for full analysis and comment.