Euro market is turning ugly

Is it all over for the year for the SSA dollar market? With 10 year agencies widening to Libor flat and the yield on the 10 year Treasury trading around 4% for the first time for two years, it certainly looks like it. The euro market is still open for business — but only just. Rentenbank and NRW executed their benchmarks but neither were easy trades. Eksportfinans, on the other hand, had to pull its Eu1bn two year despite attractive price guidance of mid-swaps less 3bp-4bp. Read this week’s EuroWeek for coverage on the two euro deals that did print and the reasons why Eksportfinans didn’t.