German Sovereign

Guarantor: Federal Republic of Germany

FMS Wertmanagement took advantage of the dearth of supply in short dated euro paper to score an extremely tight price for its €1.5bn November 2020 benchmark on Thursday.

L-Bank shattered its sterling size record on Wednesday, exceeding the expectations of even its leads with a £500m five year deal.

FMS Wertmanagement has picked four banks for a short end euro transaction, making the most of the reopening of an area of the curve that has hosted very little public sector issuance in the past year.

The dollar market was on spectacular form on Wednesday, with a Canadian province pushing out a rare 10 year bond, a supranational smashing its size record and a $4bn five year from a German agency.

German government-owned development bank KfW has entered into an agreement with Eurex Clearing that will see its euro denominated interest rate swaps cleared by the Frankfurt central counterparty.

Public sector borrowers are lining up a three pronged attack on Wednesday in a dollar market that is enjoying its widest swap spreads of the year. Quebec is attempting the first 10 year dollar benchmark since the first week of the year, KfW is out in fives — a part of the curve that has also become attractive in euros — and the Inter-American Development Bank is coming at the short end.

The euro market looks set to swing back into full action next week as borrowers launch into their second quarter funding requirements, with an unusual amount of attention clustering around shorter maturities.

A higher than expected UK inflation rate led to a sell-off in Gilts this week, a move that may put an end to what has been a remarkable run of traffic in sterling SSA bond issuance.

The European Investment Bank and KfW on Wednesday tapped the long end amid an otherwise quiet euro market.

The SSA market is “breathing a sigh of relief”, according to one SSA syndicate banker, as this week's hotly anticipated Netherlands election produced the result capital markets bankers were hoping for.

The sterling market was red hot this week with public sector issuers hitting screens in force, despite a headline heavy calendar.