Europe

Turkey was, yet again, at the fore of market participants’ minds on Tuesday. As inflation spikes, the country has indicated its intention to encourage more borrowing following a debt issuance spree in June.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of busiess on Monday, July 5. The source for secondary trading levels is ICE Data Services.

Santander has appointed a new head of sustainable capital markets in London: Victoria Land, until recently head of APAC sustainable banking at Crédit Agricole in Hong Kong.

Indian company Tata Steel has returned to the loan market. It is in talks with banks for a £200m ($276m) financing to support its UK business.

Sentiment in the sovereign, supranational and agency sector was broadly supportive on Monday ahead of a smaller than expected 30 year OAT sale on Tuesday and, more importantly, the European Union’s next slug of issuance under its Next Generation programme that is due next week, said traders.

Citi has hired a senior investment banker from UBS to take over as investment banking head for Italy from Leopoldo Attolico, who is moving into a vice-chairman role.

Finland’s Municipality Finance has sold its first bond linked to one of the new risk-free rates, opting for the Secured Overnight Financing Rate for its $200m floater.

France is preparing a 30 year OAT syndication, capitalising on a market that seems eager for paper that has snapped up an EFSF tap with an order book more than eight times subscribed.

Compagnie de Financement Foncier responded to investor demand for defensive maturities on Monday by issuing the first five year covered bond from a core European bank this year. Although the super-sized deal attracted substantial interest, the leads said it would be incorrect to conclude that market sentiment had turned positive.

The EU Commission has requested proposals for a benchmark bond expected to be priced in the week commencing July 12, having restored NatWest Markets and Natixis to its list of eligible dealers.

Frank Drouet, who left Société Générale's global markets business in 2019 after 30 years, has landed a role at rival Crédit Agricole.

Citi has named the leadership for its banking, capital markets and advisory business in Iberia. Meanwhile, it has also announced who is taking on Abraham Douek's responsibilities in DCM after he quit to join Santander.