The euro market got off to a fine start this week as a supranational rarely seen in euros appeared at five years and a mainstay of the market pulled off another successful trade. But later in the week, cracks began to show.
Although typically a dollar borrower, the Asian Development Bank selected euros for its five year deal on Tuesday. BNP Paribas
, Crédit Agricole
and Goldman Sachs
ran the books, setting the spread at mid-swaps minus 22bp, 3bp-4bp wide of where bankers said KfW (which