Rally takes heat out of KfW dollar duration

14 Apr 2011

A rally in the US Treasury market this week curtailed top tier SSA borrowers’ aspirations to issue long end dollars and left KfW issuing a seven year Eurodollar deal that struggled instead of a planned 10 year global dollar bond.

Although bankers have been seeing appetite from Asian central banks and asset managers for longer dated dollar issuance for the past two weeks, a fall in US Treasury yields on Wednesday and Thursday scuppered KfW’s hopes of a new 10 year benchmark. Bankers said that, while a $2bn ...

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