Austria kicks off ‘new norm’ with huge book despite deeply negative yield

Downward Slope Sign
By Burhan Khadbai
26 Jun 2019

The Republic of Austria received huge investor demand for its five year euro benchmark on Wednesday, despite the bond being priced with a yield below the European Central Bank’s deposit rate. The sovereign also took advantage of the rally in eurozone government bond yields to tap its outstanding century bond for a further €1bn.

On Tuesday, Austria mandatedBank of AmericaGoldman SachsJP MorganNomura and UniCredit  for a €3bn no-grow five year benchmark with the “possibility of 100-year issuance”.

In the end, Austria instead opted to tap its outstanding century bond, rather than take out a new line, which ...

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