Euro

Core SSA spreads suffer as EU-level funding expected to jump, but concerns also loom over Bunds and other govvies

Big orderbooks and zero average new issue concession paid belies chaos in rates market

Some borrowers think the risks outweigh the benefits

Market becomes harbour in geopolitical storm with borrowers tipped to set sail

But low spreads on bonds posing stiff competition for loan market

Issuer makes saving versus home currency and discovers ‘extraordinary’ real money demand

Exceptional moves in rates could impact relative value across the FIG capital structure

◆ German state braves extreme spread volatility ◆ Deal was priced after government signalled higher Bund and Länder supply ◆ ‘Flip side for investors’ is much higher yield

EGBs sell off as Germany tries to fund both infrastructure and defence through debt brake reform

◆ Germany syndicates new Bund after spending shock ◆ Was the spread tight? ◆ ‘A great sign’ that market still functions

◆ Three IG corporate issuers snag more than €12bn of demand ◆ Whipsawing rates do little to dent appetite ◆ Yield hogs: Harley-Davidson tightens spread by 45bp

◆ Tuesday brought 'first proper correction' for European FIG bonds this year ◆ But NN sails ahead with tight pricing ◆ Pays some new issue premium due to worse sentiment and larger €1bn size