Supranationals and agencies grow in popularity among euro private medium term note investors, as the buy-side shuns risk and moves to top rated borrowers.

In a week when Greece’s negotiations with its creditors grew labyrinthine in their complexity, with contradictory statements spewing forth faster than the country’s spiralling yields could follow, public sector borrowers are changing their approach.

Public sector borrowers are snapping up opportunities in the medium term note market, as Greece’s bail-out negotiations and imminent US non-farm payroll data stifle syndicated supply.

The Flemish Community of Belgium has hit the market with a quartet of private medium term notes — a rare appearance from a public sector borrower in the currency this week.

Long end trades in the medium term note market will be very difficult to execute in euros for at least a week as the possibility of a Greek default and exit from the eurozone fuels volatility.

NRW.Bank has taken advantage of favourable moves in the dollar/euro cross currency swap rate and a sell-off in US Treasuries to place its first callable zero note in dollars in nearly a year — and more euro agencies are likely to follow.

The Black Sea Trade and Development Bank (BSTDB) is considering printing the first bond from its new €1bn MTN programme in the third or fourth quarter of this year.

NRW.Bank has taken advantage of rising dollar rates to place its first callable zero note in dollars for nearly a year — and more issuers could follow.

The Belgian city of Mechelen returned to the capital markets with a pair of private medium term notes, amid a flow of investor-driven MTNs from Belgian sub-sovereigns. And there is more to come, as issuers look to lock in cheap funding.

The Province of Manitoba has made its first foray into euros after spotting an arbitrage opportunity to swap back to Canadian dollars.

Export Development Canada has placed its second dim sum of the year, driven by a reverse enquiry from an investor buying EDC debt for the first time.

RBC Capital Markets is set to add a European MTN head to its team after hiring a former ING face.