France smashes 20 year as demand heats up in long end

By Burhan Khadbai
28 May 2020

France impressed as it received a record €51bn order book and paid a small new issue premium with its first syndication since the outbreak of the Covid-19 pandemic. The sovereign was joined in the long end of the curve this week by two sub-sovereign borrowers as investor appetite for duration grows, with more supply expected to follow.

Following the mandate announcement on Tuesday, leads BarclaysBNP ParibasDeutsche BankNatWest Markets and Société Générale opened the books for France’s new May 2040 euro benchmark on Wednesday morning with guidance of 9bp area over the June 2039 OAT and received more than €19.5bn of indications of interest.

As the ...

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