Euro

The investment grade corporate bond market started August with a pair of transactions that supported the positive tone of the market. Primary market participants are still in positive mood, but are yet to see any further deals announced.

Greece’s planned return to the 10 year part of its euro benchmark curve is likely to be in late August or early September, according to market sources.

BTPs sold off on Friday morning ahead of the Italian government’s crucial 2019 budget review, with yields reaching their highest level in two months.

There were various approaches to assessing the fair value of World Bank’s €750m August 2034 trade this week, its first euro benchmark in almost two years.

Rating: Aaa/AAA

World Bank returned to the euro benchmark market for the first time since October 2016 on Wednesday, amid an attractive euro/dollar basis swap for dollar funders.

The World Bank has chosen leads to run a euro benchmark that will be the first from the borrower in nearly two years.

Rating: Aa1/—/AAA

Investor appetite is returning to the short end of the euro SSA curve, with yields rising as the European Central Bank weans issuers off its asset purchase programme.

Société du Grand Paris, a French agency that plans to sell its debut bond issue later this year, has launched the first ever Green Euro Medium Term Note programme — a move that bankers and experts said could bring a range of benefits to the issuer and the wider SRI market.

Greece is not likely to join the European Central Bank’s Public Sector Purchase Programme after it exits its bailout programme, according to a senior rates strategist.

The European Stability Mechanism on Tuesday won huge demand for its first five year euro benchmark since October 2015, showcasing returning investor appetite in the short end of the curve.