Total takes spreads still tighter

French oil firm Total demonstrated that levels are still tightening as it priced its latest issue at the narrowest spread for a corporate bond since the collapse of Lehman Brothers. It sold Eu1bn of five year paper at mid-swaps plus 87bp from a book of more than Eu3bn. However, it wasn’t only highly rated darlings of the market that could access funding this week. ThyssenKrupp, the triple-B rated steel firm, issued Eu1bn of seven year paper and Eu500m of four year notes at mid-swaps plus 555bp and plus 430bp respectively. And Tesco’s rating downgrade from Fitch didn’t stop it printing over £2bn in a triple tranche issue. Where next for corporate bonds? Read EuroWeek on Friday.