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Telecom Italia became the first Italian corporate to sell a bond deal since the new Italian government was installed but found fates conspired against it as Italian government bonds fell throughout the day.

It was the deal the corporate bond market had been waiting for. German pharmaceuticals company Bayer had flagged a €22bn bond equivalent bond deal to finance its acquisition of Monsanto. The deal was executed efficiently in the dollar and euro markets, but what wasn’t expected was the wave of confidence that washed over the rest of the European corporate bond market as a result.

The expected torrent of mergers and acquisitions-related supply arrived this week with two borrowers taking home a combined $31bn after credit markets seesawed in the latest bout of Donald Trump-inspired volatility.

Volkswagen used the slipstream of the upbeat corporate bond market this week to print the largest corporate hybrid bond deal of the year to date. The dual tranche offering garnered €8bn of demand.

Spanish electricity utility Iberdrola has been one of the leading corporate issuers of green bonds and, on Thursday, it took its total green issuance to more than €7bn with its latest offering.

French toll road operator Autouroutes du Sud de la France kept up the positive tone in the IG corporate bond market with a 10 year deal on Thursday, which it was able to increase in size and price with a single digit new issue premium.

The Republika Srpska region of Bosnia and Herzegovina is seeking to issue a five year bearer bond of up to €200m through Hong Kong-based broker BMI Securities, but investors are cautious that this is not a run of the mill CEE bond issue.

Bayer’s €5bn four-tranche corporate bond offering on Tuesday not only cleared the way for other issuers to approach the market, but the €22.5bn of demand gave four issuers the confidence to sell a variety of deals in Europe on Wednesday. €3.5bn was issued in the euro market and £1bn in sterling.

German pharmaceutical company Bayer's $15bn and €5bn issuance this week provided the first big M&A related issuance the euro investment grade corporate bond market has seen for three months. However, following a court ruling in the US on AT&T's planned acquisition of Time Warner, there is likely to be more to come. Investors are aware of the need for careful analysis however.

Emerging market bond yields are still drifting higher and higher, but EM investors are vociferously backing the asset class and starting to claim that the wider yields mark a good re-entry point.

German pharmaceutical company Bayer delivered on its plans to raise more than €20bn in senior bonds with an eight tranche dollar deal on Monday and a four tranche euro transaction on Tuesday. The dollar deal was three times oversubscribed and the euro deal nearly 4.5 times.

EPP, a Polish real estate investment company, postponed its five year euro bond on Monday despite having gone as far as to set the yield for the deal. The company blamed adverse market conditions, while bankers away from the deal were divided as to whether anything could or should have been done differently by the leads.