Canada and KfW may follow World Bank blow-out

Canada and KfW are said to be looking at the dollar market for next week after the World Bank’s $5bn five year global bond proved to be as good as bankers had predicted. A reoffer spread to US Treasuries of 19bp was by far the tightest spread achieved this year both on a Treasury basis and versus mid-swaps and the deal has continued to perform in secondary markets.