UK covered bonds in euros have been modestly supported in the secondary market, as investors view spreads as relatively generous compared to the rest of Europe, and because some say the UK's chance of leaving the European Union at the end of October without reaching an agreement has receded. However ‘the risk of a no-deal exit remains high,’ Standard and Poor’s warned on Monday.
Euro-denominated UK covered bonds were slightly better bid on Monday said traders, who noted that conditions were otherwise relatively quiet. Although sentiment is “not massively bullish”, buying of UK covered bonds in the four and five year area was recently seen.
This interest was grounded on the