German Sovereign

City State of Hamburg sold a €500m 5.5 year new issue in little over an hour on Monday morning, outstripping dealers’ expectations for the trade.

The State of North-Rhine Westphalia was able to increase a four year floating rate note on Monday at the tight end of price guidance as strong international investor interest built an order book nearly double the targeted size.

The State of Berlin raised €500m in two hours on Wednesday morning with a fully sold April 2018 floater that was priced flat to the issuer’s curve.

State of North-Rhine Westphalia is in the mood for a potential benchmark later in October after printing a pair of issues totalling €1.5bn this week.

State of Baden-Württemberg priced a €500m eight year floating rate note on Thursday morning — half the size it had been discussing with banks earlier this week. Push back over pricing meant the issuer decided to go for a smaller trade to get the level it had been targeting and there was no evidence that even that smaller size achieved full subscription.

The State of Baden-Württemberg is looking to mandate banks for a €1bn floater this week, SSA Markets understands. But the borrower’s hopes of a deal may have been inadvertently scuppered by compatriot agency, KfW.

The State of Baden-Württemberg is looking to print a euro benchmark this month, SSA Markets understands. A deal would follow a three year floater from Lower Saxony, priced on Monday afternoon.

The European Financial Stability Facility sent out a request for proposals on Wednesday and could come with a deal as soon as next week. The bailout borrower will join several other names looking at printing in euros, but investors are cautious and borrowers could prove reluctant to test sentiment this week or next with a benchmark.

Germany, Italy and France started off a busy week of auctions on Monday with €18.87bn worth of short term debt auctions. Investors maintained the eurozone divide between periphery and core, with yields edging up in Italy and down in Germany, and bankers expect this to trend to continue throughout the summer.

The State of Saxony-Anhalt printed its first sterling bond since 2001 on Tuesday. But Bankers are divided on the future of sterling issuance for German states.

Spain sold over €7bn of bills on Tuesday between three and seven months in maturity while its 10 year yields moved north of 7.5%. Meanwhile, Moody’s shifted the outlook on Germany’s triple-A rating to negative.

German states took advantage of high demand from the country’s institutional investors to print a series of long dated floating rate notes this week. The investors are on the hunt for safe assets which pay some yield.