ESM-EFSF

First, the EFSF was expected to send out an RFP for a benchmark deal this week. Now it seems the wait may be even longer, with syndicate bankers not expecting requests to go out until the middle of next week at the earliest.

A pair of European supranationals are expected to revive euro supply in October, following a two week pause in SSA benchmark issuance in the currency. Dollars hogged the limelight this week and three days of public holidays in China next week is likely to keep many borrowers away until October 8.

FMS Wertmanagement broke its sterling commercial paper record and the EFSF sold three month treasury bills with record low yields as the latest bad news from the eurozone led short term investors to shun yield for safety this week.

The European Financial Stability Facility was set to price the second 10 year euro benchmark of the week on Wednesday afternoon. However this deal, unlike the barnstormer from Finland a day before, was set to price at the wide end of guidance.

The European Financial Stability Facility has mandated three banks to run a 10 year euro benchmark. The mandate came straight after a 10 year from Republic of Finland flew out of the gates Tuesday morning.

Next week the issuance calendar looks less like a pipeline and more like a bunfight. The pressure’s on to get funded ahead of a messy September, and borrowers will be tempted to cram deals in. But they must be cautious.

Several borrowers are lining up benchmarks despite a decline in investor sentiment this week. Issuers face a choice between risking potentially tough conditions and overcrowding to get funding done ahead of September — a month they fear could be a disaster — or waiting.

The European Financial Stability Facility sent out a request for proposals on Wednesday and could come with a deal as soon as next week. The bailout borrower will join several other names looking at printing in euros, but investors are cautious and borrowers could prove reluctant to test sentiment this week or next with a benchmark.

The European Financial Stability Facility (EFSF) received strong demand at Tuesday’s three month treasury bill auction, allowing it to offer negative yields for the second time.

The European Financial Stability Facility (EFSF) held talks with several commercial banks about setting up repo lines, on August 3. Bankers expect the request is the EFSF’s preparation for secondary market intervention.

SSA syndicate managers praised Tuesday’s tap by auction of the EFSF’s 1.125% June 2015s. The auction sold at a higher price than where bonds had been trading shortly before the sale End investor interest drove the pricing said, bankers, rather than primary dealer aggression.

Money market funds buying European government debt facing a drought in yield should turn their attentions to non-triple-A rated commercial paper, analysts have suggested. But with a number of split-rated borrowers such as Belgium, France and now the EFSF offering negative yields in money market instruments, fund managers’ quests for yield could be hindered.