Currencies

KfW

The euro market will be tested quickly following the first round of the French presidential election on Sunday as the European Financial Stability Facility has sent out a request for proposals.

Wells Fargo brushed off heightened political tension in France and Korea on Wednesday, offering a triple-tranche bond to a hungry Australian dollar bond market.

The first round of the French presidential election takes place this Sunday and, while the market is mostly quiet, Derek Halpenny, head of global markets research at MUFG, says that market participants have not priced in much risk of a shock anti-EU result.

A hotly contested battle for the French presidency has quieted much of the public sector market this week, but KfW has picked banks for a five year euro benchmark.

Wells Fargo is expected to sell on Wednesday a dual tranche deal in Australian dollars — a rare offering from a well-known name.

China’s National Development and Reform Commission (NDRC) announced a second batch of 11 firms as part of a pilot programme, which allows firms to choose their funding windows in the international debt market without needing to seek the regulator’s blessing.

Aluminum Corp of China, Peking University Founder Group, Beijing Enterprises Holdings and Singapore’s Oxley Holdings all walked away with new bonds on Wednesday, wrapping up a blockbuster issuance week ahead of Easter.

China Huiyuan Juice Group aims to bump up its latest borrowing to €280m after raising a larger than expected €160m last month.

The French presidential election saga has taken another twist, with far-right candidate Marine Le Pen’s chances slipping — but those of Jean-Luc Mélenchon, from the other extreme of the political spectrum, rising. Asian investors are pulling back from deals until the election hurdle is cleared, say issuers — but the rise of Mélenchon may also provide an earlier than expected relief rally.

Expecting the unexpected has been market philosophy since the Brexit vote last June. Adherents may well have thought that made Marine Le Pen a certainty to win this year’s French presidential election.

Swiss Prime Site, LGT Bank and the City of Zurich took advantage of a quiet market, placing Swiss franc bonds with domestic investors before Easter holidays.