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Shares in Solvay, the Belgian chemical company, closed at €103.65 on Thursday, up 3.1% since Monday night, after shareholders voted to approve the €1.5bn rights issue to finance its takeover of Cytec Industries, the US maker of advanced materials.

Russia bonds burst back to the top of the emerging market priority list without a sanction being lifted after Alfa Bank smashed through its own yield curve on Wednesday. Demand is rampant among supply-starved investors who will be gleeful about the thawing of the geopolitical frost between Russia and the west, writes Francesca Young.

Green bonds are finally beginning to take hold among commercial banks, which could end up being the product’s main issuers.

Public sector borrowers are looking for opportunistic deals in niche currency medium term notes as the year draws to a close.

European Investment Bank has launched a rare, privately placed index linked Climate Awareness Bond, while World Bank is offering retail investors the chance to buy similarly structured green paper.

All that glitters continues to decline in value in commodity markets this week. Despite macro fears, precious metals markets retreated ahead of the next US Federal Open Markets Committee meeting next month, at which a rate hike is possible.

Public sector issuance could grow next year as Europe faces the double cost of strengthening security against terrorism and re-homing people fleeing war in the Middle East, adding to existing supply pressures, bankers have warned.

Demand was so strong for an agency bond tap on Thursday that the leads had to ask the issuer to increase the deal, as SSA investors scrambled to get their hands on one of the last large issues of the year.

Réseau de Transport d’Electricité issued a benchmark 10 year bond on Thursday that grew to €1bn, as a French-driven order book for the bond hit €3.5bn.

A 12 month roller coaster ride for US rates expectations has ended with the 10 year Treasury yield back where it started, and in the meantime the CEEMEA bond market has been turned on its head for completely unrelated reasons.

Governments must focus on issuing benchmark deals to mitigate a secondary market liquidity squeeze, which is only set to worsen as regulation hits primary dealers, warned bankers at a government bonds conference in Brussels.

Credit Suisse’s withdrawal from primary dealerships has scared the market, while regulatory change is hurting other banks still in the business. Now issuers must take responsibility for their own liquidity — and that means doing bigger deals.