Poland transcends Greek worries with oversubscribed seven year

Renewed uncertainly over whether Europe will support Greece is dominating financial markets again this week, with volatility in sovereign debt further increased by Portugal’s downgrade to AA- by Fitch. Nevertheless Poland managed to issue a highly successful seven year bond, increased to Eu1.25bn from Eu1bn, priced at 100bp over mid-swaps – a premium of just 2bp. Meanwhile BNG also accessed the seven year sector with a tightly priced Eu1bn transaction. The only SSA to hit the dollar market was Eksportfinans, which issued a $1bn three year global at mid-swaps plus 25bp. Elsewhere, Network Rail highlighted demand for linker product in the sterling market, issuing a £600m tap of its 2047 inflation-linked bond. Read Friday’s EuroWeek for the market’s take on the SSA primary market.