Morgan Stanley opened books for a 6.5 year non-call 5.5 senior note through its own investment bank. MUFG joined the deal as a co-lead without books.
The bond was structured to pay a fixed rate of interest until the call option, after which it would switch to paying a floating rate.
Morgan Stanley began the pricing for its deal in the 80bp-85bp area over mid-swaps on Tuesday morning.
It then fixed the spread at 65bp over, after demand had reached an impressive €2.8bn.
Market participants said the pricing included a small premium for investors, somewhere in the low to mid-single digits.
The issuer had not set the size of its deal in time for publication.
Morgan Stanley arrived in euros a day after Goldman Sachs, which sold €3.5bn of senior paper on Monday.
Large US banks have been very active in the market after publishing their first quarter results.
They have raised about $54bn of dollar debt between them since April 15 — when their earnings season began — and they also have tapped various other currencies, according to Dealogic.
But the deals from Goldman Sachs and Morgan Stanley this week are the first from the sector to arrive in euros.
Goldman tapped into pent-up demand for shorter-dated paper, with a pair of three year non-call two senior bonds.
It sold a €2bn fixed rate deal at 50bp over mid-swaps and a €1.5bn floating rate note at 55bp over three month Euribor.
“The rare short end FIG offering collected more than €5.75bn of demand, priced only 1bp-2bp above a negative yield and continued the recent global US bank supply wave,” summarised one banker away from the transaction.