Currencies

A dance of low yield limbo is forcing public sector borrowers to rewrite their autumn funding plans as crushed rates have made the short end of the euro curve all but inaccessible. Lewis McLellan reports.

The State of North Rhine-Westphalia sold on Thursday the longest dated benchmark ever from a German state, in a move which may encourage other Laender to follow suit.

The long end of the Kanga curve saw action this week, as Japanese investors hunted for yieldy paper.

Huarong International Financial Holdings is seeking a HK$1.5bn ($193m) dual tranche loan and has picked a Taiwanese bank to lead the trade.

The African Development Bank has sold an A$35m ($26.6m) tap of its June 2026 Kangaroo bond.

Nederlandse Waterschapsebank has pushed the funding boat out in euros, by selling a rare 50 year MTN.

Bank Nederlandse Gemeenten has tapped a June 2024 line, managing to print €400m despite offering a negative yield. Land NRW will sidestep the negative yield problem on Thursday by moving out the curve.

KommuneKredit printed an A$60m ($45.7) tap of its November 2026 Kangaroo bond on Wednesday, with bankers confident more reverse enquiry-driven taps are en route.

The World Bank’s debut IMF special drawing rights (SDR) bond — dubbed a Mulan bond — is an acknowledgement of China’s success in reforming the renminbi, George Richardson, the organisation’s director and global head of capital markets, told GlobalRMB.

International Financial Corporation more than doubled its initial target by tapping its July 2026 Kanga bond for A$125m ($95.5m) on Tuesday. The large size was due to an unusually wide investor base, a banker on the deal said.

The Province of Manitoba has printed ¥6bn ($59.3m) of 30 year paper, equalling the province’s longest ever note in the currency.

Rhätische Bahn entered the Swiss franc market on Monday for the first time ever with a Sfr200m ($207.6m) nine year and fifteen year dual tranche deal.