ESM-EFSF

The European Stability Mechanism will open books on Tuesday on what SSA bankers believe will be the first euro benchmark issuance to carry a negative yield.

European sovereigns, supranationals and agencies highlighted what bankers expect to be a theme for the next two years, as the promise of the European Central Bank buying their euro denominated bonds all the way out to 30 years pushed investor demand further out the curve.

The European Financial Stability Facility sold an unusually small new issue on Tuesday at a minimal concession to secondaries — the deal marks a departure from the supranational’s usual tactic of offering a decent premium and tilting for size.

The European Financial Stability Facility has opted for an unusual maturity with its first benchmark of the year — set to be priced on Tuesday — in an effort to attract bank treasury accounts. The EFSF follows a 10 year euro benchmark from the Province of Ontario on Monday.

KfW showed that pricing through mid-swaps is no obstacle at the start of 2015, as on Thursday it built a comfortably oversubscribed book on the first euro deal to come through swaps this year. The issuer plumped for a 10 year deal — an option also taken by Province of Quebec on Thursday and a tenor that many SSA officials think the European Financial Stability Facility will take next week.

Three of the largest euro funders in the supranational and agency market are set to reduce their issuance in the currency next year. But renminbi could form a bigger slice of at least one issuer's 2015 business.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark as of Thursday's close. The source for secondary trading levels is Interactive Data.

The European Union will this week tap its most recent bond to fund more lending to Ukraine, after mandating banks for a deal on Tuesday. The mandate came as the European Stability Mechanism completed its bond business for 2014 with its second ever tap.

The European Financial Stability Facility on Wednesday joined an elite gaggle of issuers able to raise 10 year cash at levels through mid-swaps.

The European Financial Stability Facility has mandated three banks to run a long-dated tap that will complete its 2014 funding programme. It is likely to knock a double digit figure off its tightest spread to swaps on a 10 year so far, said bankers off the mandate.

Finnvera looks set to join the euro benchmark pipeline for the rest of the year after hiring banks to hold investor calls on Monday. The European Financial Stability Facility is set to bring a deal this week after circulating requests for proposals last week, while OeBB-Infrastruktur was first out of the blocks in euros on Monday.

This week's scorecard features updates on the progress of selected European supranationals and agencies through their funding targets for the year. Read on to see which have room for one more benchmark in 2014.