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The European investment grade corporate bond market is still returning to full health on a day by day and deal by deal basis. On Tuesday, it took another step forward as Austrian oil and gas company OMV sold the first hybrid bond for a month and found investors still favouring the higher yielding asset class.

The CEEMEA and Latin America primary bond markets have shut down for the week as investors fret over the outcome of the European Central Bank and Federal Open Markets Committee meetings on Thursday. The outcomes have the potential to shutter the market until after the summer, bankers said.

Austrian oil and gas company OMV sold the first corporate hybrid deal in four weeks on Tuesday when it sold a €500m perpetual bond with a non-call six year structure which was more than three times subscribed.

Several issuers took new deals on the road in the second half of May and early June, but have struggled to find a window to execute their deals after the roadshows were completed. Recruitment firm Manpower met investors from June 6 to June 8 before selling its deal on Tuesday.

French vehicle parts supplier Valeo opened the corporate bond market alone this week when it sold a €600m seven year deal ahead of what one bank described as “the most important macro week of the year”.

Slovakia, Croatia and Romania dived into the primary bond market this week — all keen to take advantage of what has been by recent standards a rare period of market stability to print.

Romania has released initial price guidance for a dollar bond offering around a 30bp-40bp pick-up over its outstanding curve, according to a banker away from the deal.

The Republic of Croatia pulled pricing for its €750m 2.7% 2028 bond 30bp tighter than initial price guidance on Wednesday, bringing the reoffer spread nearly flat to the outstanding curve.

After a quiet few days in emerging market bonds, two CEE sovereigns have braved the market this week — Slovakia and Croatia. Slovakia’s success in printing a 50 year tranche — ultra long by CEE standards — and being the first eurozone sovereign back in the market since Italy-led volatility last week, has brought some comfort to investors.

A number of corporate bond issuers are taking advice from their bankers about accessing the market, but the new issue premiums paid by Volkswagen Bank and Carrefour put them off from launching their deals on Wednesday.

The Republic of Croatia released initial price guidance for a 10 year bond on Wednesday morning and books for the deal are already in excess of €1.3bn.

After a volatile May, which ended with a week of no corporate bond issuance as market volatility and public holidays took their toll, investors have welcomed the slow, steady pace at which supply has returned.