Covered bond buying steps up as EU trades up in grey market

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By Bill Thornhill
19 Oct 2020

The technical outlook for covered bonds had always been supportive, but after it emerged that newly mandated EU bonds were trading sharply higher in the grey market on Monday, traders were even more confident, especially for deals in the ultra-long end of the curve, such as CFF’s transaction issued on Monday.

Compagnie de Financement Foncier’s €500m 0.01% October 2035 that was launched on Monday was trading up by 13 cents in the grey market before it was priced at 4pm CET. 

The European Union is expected to price 10 and 20 year bonds on Tuesday with one trader spotting the ...

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