German Sovereign

The German State of North Rhine-Westphalia capitalised on a bid for duration, despite a steady trickle of supply from German states in euros over the summer break, to print a long 10 year deal at a level leads said was in line with fair value on Tuesday.

Read on to see how selected benchmarks are faring in secondary. Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark as of Thursday's close. The source for secondary trading levels is Interactive Data.

This week's scorecard covers the funding progress of sovereign issuers, with all of the eurozone periphery comfortably ahead in their programmes despite some wobbles in secondaries over the past month.

Read on to see how selected benchmarks are faring in secondary. Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark as of Thursday's close. The source for secondary trading levels is Interactive Data.

Eurozone periphery sovereigns enjoyed a boon ahead of bill auctions next week, as their spreads tightened versus Bunds on Thursday morning — despite German yields hitting record lows — following miserable growth revealed in second quarter GDP data for the currency bloc.

The State of Lower Saxony priced a €500m eight year through swaps on Monday. Other Laender are likely to follow as they look to pick up funding at attractive levels through small syndications and taps over the summer, according to a DCM banker based in Germany.

Greece's €1.5bn July 2017 from four weeks ago suffered a near 50bp widening versus Germany over the past week, as investors stormed into the eurozone core. But most safe haven assets like the World Bank's $1.75bn December 2016 from last week tightened against swaps and benchmarks.

Investors starved of paper from well-funded borrowers and the summer slowdown allowed the State of Berlin to increase a €100m 10 year print to €250m on Tuesday, following a €125m eight year from the sub-sovereign on Monday.

Banco Espírito Santo reported a €3.6bn loss this week, but the Portuguese soveriegn looks safe from contagion. Its $4.5bn October 2024 from four weeks ago has tightened versus swaps since pricing.

Two German states sold taps of euro denominated bonds late this week. Federal State of Hessen and the City State of Berlin drew attention from domestic accounts despite many investors slowing their buying because of the summer break.

This week's scorecard covers the funding progress of sovereign issuers, with all of the eurozone periphery comfortably ahead in their programmes despite some recent wobbles in secondaries.

The State of Baden-Wuerttemberg was able to print an increased benchmark at the tight end of guidance on Thursday, becoming the second German state to do so this week.