Turbulent euro market closed to SSAs, dollars open if price is right

12 Jun 2008

Sovereign, supranational and agency issuers had to postpone several bond issues this week in the face of treacherous market conditions, including KfW, which had been widely expected to sell a Eu5bn five year, and the Kingdom of Spain, which had hoped to place a syndicated 15 year Bono.

Bankers said bond markets experienced their most turbulent trading sessions since the 1990s after ECB president Jean-Claude Trichet’s hawkish comments last Thursday on inflationary pressures, which hinted at a rate rise at next month’s ECB meeting.

The market took this to mean the ECB was planning a series ...

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