RBC struggles after TD prices covered bonds wider

Royal Bank of Canada incurred the wrath of the market on Wednesday when it issued a €1bn deal from a €750m book. The spread, which offered an insufficient concession to Toronto Dominion’s earlier deal this week, widened by 4bp and caused the market to widen 2bp. At the same time Bunds fell sharply, suggesting the seven year may no longer be the market’s sweet spot.