Soaring govvie yields aid EFSF in long end, but France stutters
Spiralling core eurozone government yields helped the European Financial Stability Facility pull off a cracking dual tranche trade this week, picking up a hefty €3.5bn at the long end. That led to speculation that other issuers could look to grab some long end funding before the summer — but with rates still rising and a weak French sovereign bond auction on Thursday, the window may have passed.
Comments by European Central Bank president Mario Draghi last week about factors limiting inflation being “on the whole temporary” sparked the govvie rout, as investors bet that the central bank could begin to taper its quantitative easing programme later this year.The fire sale grew hotter this ...
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