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Sovereigns

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SSA
All as expected by the market, but lack of more details regarding bill issuance somewhat disappoints
◆ Sovereign back in euros, alternating from dollars in 2025 ◆ “Very low double digit” spread over Germany ◆ Sweden, KfW key comps
Likely successor as UK prime minister Andy Burnham further to the political 'left than anyone else’ but market hopeful that scope for more borrowing is limited
Fiscal targets for 2026 already met, more early debt repayments underway
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  • The UK impressed onlookers with its sale of the second syndicated conventional Gilt of its 2021/22 financial year on Tuesday.
  • SSA
    Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of busiess on Monday, July 12. The source for secondary trading levels is ICE Data Services
  • Sri Lanka's dollar bonds bounced back at the end of last week, following news that the country's central bank is ready to repay debt set to mature this month.
  • SRI
    Although the biggest issuers of all — the US, Japan and China — remain outside the market for now, sovereign ESG debt has gained real momentum in the past 18 months, as a growing number of developed and emerging market issuers have endorsed green, social and sustainable bonds as part of their financing options. As a result, investors are seizing new opportunities to engage on national pandemic recovery and net zero strategies and targets.
  • Bonds issued by the Chinese government and policy lenders saw a strong rally on Thursday after the State Council signalled a cut in banks’ reserve requirement ratio (RRR), a move that could unleash hundreds of billions in renminbi liquidity into the market.
  • France stuck to its approach of engaging with investors during bookbuilding to persuade them not to inflate orders for its second syndication in a row this week, when the sovereign brought a new 30 year OAT to the market.