EU in focus

It’s all about intermediate maturities in euros this week with the European Union printing a Eu1.5bn nine year at 20bp over mid-swaps, just 2bp over the European Investment Bank curve. Proceeds of the issue are for on-lending to Latvia and Romania. Comunidad de Madrid is issuing a Eu500m 10 year at mid-swaps plus 130bp, following the Canary Islands Eu620m deal priced at 155bp. Meanwhile, news of more austerity measures to be undertaken by Greece have had a calming affect on the peripheral sovereign sector but there is still no hint of when that bond will be issued. OKB’s $1.25bn three year global enjoyed strong Asian and central bank support and the Bank of England has mandated for its annual three year visit to the dollar market. The BoE transaction is expected next week at around mid-swaps flat. Read EuroWeek on Friday for coverage of primary market and for news of what’s happening next week.