European Union

◆ Borrower builds one of largest books ◆ Prices off own curve, govvie-style ◆ Typical 2bp tightening, but fair value ‘very much on the move’

Others quietly wait for bloc's syndication while KfW jumps into dollars, pipeline could be 'well filled' this week

◆ Other options on table but issuer opts for two taps ◆ ‘Huge books’ now a norm for the issuer, clear NIP this time ◆ EU’s curve evolves to resemble that of EGB peers

◆ Choice of tenor similar to equivalent syndication last year ◆ Redemptions to support demand ◆ Bank of England out in dollars

◆ Both size and tranching in line with expectations ◆ Almost €100bn of orders for 30 year tap a 'good test for duration' ◆ Latest proof of abundant demand

Rolldown, swap spreads, repo levels among the reasons to buy

EU bonds perform, even after €30bn rise to annual issuance ceiling for 2026

Issuer's curve could flatten and its long-end may outperform euro govvie curves

◆ Private credit and equity to come under oversight for first time... ◆ ... as Bank of England eases burden on banks... ◆ ... amid global shift to lighten up on lenders, with ECB expected next

Bloc finishes 2025 bond issuance at €153bn, H1 2026 funding plan moves into focus

Rise of central bank and official institution demand bolstering 'super hot' SSA market

New issue premium paid debated ◆ 'A lot of market' had expected dual tranche ◆ EU duration and funding needs questioned