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'Everyone is ready for summer to be over' as SSA wave builds for Monday
Analysts discuss the scope of tightening in Bund swap spreads and the impact on SSA spreads
OATs and OLOs could weaken further versus Bunds while southern European countries and EU continue to paint a positive picture
Uncertainty looms large as presidential race far from clear and budget negotiations potentially ‘highly challenging’
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FMS Wertmanagement priced its inaugural Australian dollar transaction on Thursday, adding yet more bounce to the Kangaroo market’s revival.
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The market in the countdown to the Greek debt exchange deadline is remarkably upbeat, the consensus view among bankers being that the deal will go through and that market conditions will be buoyant. However, several bankers SSA Markets spoke to believe that the private sector involvement will fall short and collective action clauses will be triggered to force holders of bonds governed by Greek law into the swap.
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Mexico made the most of benign market conditions on Monday, printing a $2bn long 30 year benchmark with a new issue premium of just 10bp — less than half the concession it paid in its last benchmark in January. The deal was resoundingly popular, attracting nearly $6.5bn of orders.
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Holland has sold €4.16bn of a new 20 year bond today by Dutch Direct Auction (DDA) but, judging by the allocation statistics, the demand from real money investors for this new “benchmark” maturity was less than hoped for.
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Cyprus sold its first commercial paper trade of 2012. Portugal was also the latest peripheral sovereign to print CP as the popularity of short term bill auctions pushed investors to consider other better yielding options.