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Sovereigns

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◆ AFT's Antoine Deruennes says 'clear message' showed demand for 30 year ◆ Speedy execution before US employment data ◆ Green OAT syndication next
◆15 year a ‘good entry point to the long-end’, says sovereign ◆ Fear of missing out from both old and new investors ◆ Why Italy ran no co-lead pot this time
The sovereign had to move fast to beat the release of US economic data
Pension funds 'very much present' in the deal and central bank demand 'quite remarkable', says issuer
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  • In the last year that sovereigns, supranationals and agencies could enjoy the effects of the European Central Bank’s quantitative easing programme — but still had to cope with the Fed pushing up rates — GlobalCapital’s SSA team used its editorial judgement, with inspiration from GC’s world-famous bond comments and patented BondMarker app, to pick what it felt were the top trades of the year. The team strove to find deals that were not just the biggest — it looked for trades that set pricing markers, were innovative and brave or that made an impression in other ways. GC presents the winners here. Congratulations to the issuers and banks involved.
  • The European Central Bank set the alarm bells ringing for a fresh bout of volatility in the Italian government bond market on Thursday as it outlined its strategy for the reinvestments of its maturing bonds under the Public Sector Purchase Programme (PSPP). Burhan Khadbai reports.
  • France looks set to be in breach of European Union budget rules after president Emmanuel Macron promised a set of concessionary measures in an effort to quell the violent protests of the last few weeks. While, by the absolute letter of the law, France’s breach will not be as bad as Italy’s, such a situation will hardly do much to stem the rise of populism or boost the credibility of the EU.
  • SSA
    Lower funding needs and the European Central Bank’s confirmation that reinvestments under its Public Sector Purchase Programme will go on for some time should be supportive for the SSA market in 2019, said funding officials and analysts, even after net buying under PSPP stops at the end of this year.
  • UK government bonds have been playing their traditional role as a haven trade for sterling investors amid the Brexit turmoil of the last 2.5 years. But some investors warn that this could change if the Labour Party wins a general election, as a ‘Corbyn premium’ will push up Gilt yields.
  • CEE
    The Turkish Central Bank has, much to the relief of many in capital markets, kept its central interest rate steady at 24%, paving the way for the sovereign to return to the bond market in January.