Germany

Österreichische Kontrollbank and Erste Abwicklungsanstalt priced well received dollar deals on Tuesday. The pipeline in the currency is building with Bank Nederlanse Gementeen and Swedish Export Credit Corporation having lined up three year trades.

KfW received a final book of over €12bn for a five year euro benchmark on Tuesday, while the City of Hamburg closed out its funding for the year with its longest outstanding bond. Finnvera will add to the euro SSA supply this week, after mandating banks for a short 10 year that is likely to be its final syndication of the year.

A funding official at KfW has switched to the corporate sector.

KfW mandated banks on Monday for the first euro benchmark in the public sector market from a supranational or agency in two weeks.

Italy’s government bonds rallied to their tightest spreads versus Bunds since the start of the month after S&P opted to hold its rating for the country at BBB, while moving its outlook to negative from stable last Friday. But while there may be some respite for Italy in the weeks ahead, Germany chancellor Angela Merkel’s decision on Monday to step down at the end of her term in 2021 has left analysts fretting about the overall path of the eurozone.

Österreichische Kontrollbank will complete its benchmark funding for the year with a no-grow $1bn five year. Meanwhile, Erste Abwicklungsanstalt has lined up its second dollar deal of the year in the three year part of the curve.

Covered bonds have drifted wider over the last few weeks, reflecting heavier than expected supply and diminished market maker interest. Even so, the primary market is functioning healthily, boding well for prospective debut deals from Münchener Hypothekenbank and SMBC, deals that could surface as early as Tuesday.

DFV Deutsche Familienversicherung, the German insurance technology company, may be valued at up to €289m when it lists on the Frankfurt Stock Exchange in November, according to terms released on Monday.

Some Schuldschein investors claim a slew of transactions being shown to lenders have reached their desks only because the arrangers are trying to sell on their own exposure to troubled borrowers. But deal arrangers have reacted forcefully, and said such claims are sheer fantasy. Silas Brown reports.

The clearing arm of Eurex, the German derivatives bourse, is widening the scope of its partnership programme to cover repo and over the counter (OTC) FX markets.

Rentenbank is looking to issue one more benchmark before the end of 2018 with what would be the agency’s third of the year.

Berlin Hyp returned to the euro market on Tuesday to increase the size of its inaugural preferred senior notes to €500m, at an unchanged spread from the original issue of 13bp over mid-swaps.