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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 House of Commons' Treasury Select Committee has asked the UK Debt Management Office to answer a series of questions on its bond syndication programme, specifically on the pricing of its bonds and the fees it pays to bookrunners.
  • SSA
    Competition among public sector borrowers will be more ferocious than ever when 2021 begins, due to supersized borrowing programmes created to deal with the coronavirus pandemic, the European Union’s arrival as a big issuer and a lack of decent funding windows in January, writes Burhan Khadbai.
  • Building a UK green government bond market would take a minimum issuance of about £30bn and “some time” for the UK to establish a benchmark size for the market, according to the head of the UK Debt Management Office.
  • Finland has cut the number of its solicited credit ratings from three to two after removing Moody’s, leaving the sovereign with scores from Fitch and S&P Global.
  • SRI
    Government debt management offices are facing a new experience: bond investors enquiring about their countries’ environmental, social and governance attributes.
  • The Republic of the Philippines sold its largest international bond in more than a decade this week, raising $2.75bn from a deal that received strong support from investors confident about the country’s control of Covid, and its outlook. It even managed to get away with a record low coupon on one of the tranches.