Spreads over Treasuries on supranational and agency trades shrank to record low levels this week, with the World Bank raising debt just a hair’s width wide of US government debt. Market watchers reckon the good times for issuers are here to stay for the foreseeable future.
The World Bank printed a $4bn three year bond on Tuesday that came at a 2.249% yield — equal to just 5.3bp over Treasuries. This is the tightest priced deal over Treasuries in the SSA market since 2012, according to leads.
“The reception was incredible despite the extremely tight