Lower Saxony offers small NIP for negative yielding 10 year

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By Burhan Khadbai
06 Aug 2020

The State of Lower Saxony was the sole borrower active in the primary public sector bond market on Thursday as it raised €500m with a 10 year at a negative yield. The deal ended up comfortably subscribed in spite of a slow start to the book-build.

On Wednesday, Deutsche BankDZ BankLBBWNatixis and NordLB were mandated to run the deal, following a request for proposals.

The books opened on Thursday with guidance of mid-swaps plus 1bp area. As the books reached over €485m, the spread was set at plus 1bp or ...

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