KfW rumoured for next week as Saxony sells only half of seven year bond

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By Burhan Khadbai
08 Oct 2020

KfW could be set to hit screens with a euro benchmark next week in what may be its final public deal in the currency this year, according to bankers. The bond is likely to come with a seven year maturity, a tenor that the Free State of Saxony struggled with on Thursday, finishing with the book only around half covered.

A syndicate banker calculated fair value for a new KfW seven year euro benchmark at mid-swaps minus 12bp-13bp and recommended a starting point at minus 8bp-9bp area.

KfW will likely be joined by a number of German state deals next week, with the likes of the State of ...

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