Spain's 15 year success gives hope to periphery

The Kingdom of Spain has amassed over Eu12bn of orders for a Eu5bn 15 year bond, say lead managers BBVA, Crédit Agricole, HSBC, Santander and Société Générale with the co-lead book alone taking over 200 orders in a just a couple of hours. Pricing will take place later today at 85bp over mid-swaps, the tight end of the 85bp-90bp range which equates to a new issue premium of 7bp-12bp. The deal comes with the peripheral sovereign curve on a tightening trend. Last week’s Portuguese 10 year has tightened from mid-swaps plus 140bp to 120bp and even the recent Greek five year is back at its reoffer spread of plus 350bp despite no fresh news from the EcoFin meeting yesterday. Read EuroWeek on Friday for coverage of Spanish issue and prospects for a new Greek 10 year GGB