The German agency on Tuesday picked Barclays, HSBC and RBC Capital Markets to run a July 2020 dollar global. Initial price thoughts are 2bp area through mid-swaps and the deal is slated for Wednesday.
“It feels like a very strong market backdrop, although there’re obviously still some risks around,” said an SSA syndicate official away from the deal. “Italy is at the forefront and also trade wars.
“But I’ve been surprised by how little has been on screens. KfW will be the first real jumbo test.”
Dollar supply on Tuesday came from Japan International Cooperation Agency, which printed a no-grow $500m June 2028 at 41bp area over mid-swaps, at the tight end of opening guidance of 43bp area. The latest update put books at over $975m.
