Dollars take strain as euro market dips on Greece

KfW this week proved there is life in the rarely tapped 10 year sector of the dollar market, issuing an exceptional $4bn deal at mid-swaps plus 28bp, 2bp inside guidance. Italy encountered strong demand for its $2.5bn five year priced at plus 45bp, also 2bp inside price talk. Nordic Investment Bank meanwhile is marketing a three year global with guidance of mid-swaps less 3bp-5bp. According to leads Deutsche, HSBC and JPMorgan, orders of around $700m after an hour with little or no price sensitivity points to a successful conclusion at the tight end of guidance. Slovenia enjoyed a warm reception on Monday with a Eu1.5bn 10 year, despite being the fourth euro sovereign in a row to access this part of the curve but continuing pressure on Greek and Spanish debt and the heavy supply from last week is likely to keep SSA euro issuance at a low ebb. Read this week’s EuroWeek for further coverage and analysis.