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Markets ‘not out of the woods yet’ as large sovereigns shorten execution process to de-risk issuance
Switch auctions to make comeback as DMO chief discusses record breaking deal and 2026-27 funding
◆ Sovereign breaks BTP orderbook record again ◆ Demand was huge, but not because price was cheap ◆ Curve stability despite addition of jumbo 10 year
◆ Biggest and most popular green OAT ever ◆ Third and final syndication came earlier than in previous years ◆ Leading position in green bonds and EGB market affirmed
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UK government bonds this week joined the country’s currency in taking a hammering, but public sector bankers are confident that a scheduled Gilt syndication next week will go well — and there could also be arbitrage opportunities in sterling.
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Spain has auctioned 50 year debt for the first time, wiping more than 80bp from its cost of funds compared with when it first syndicated the paper nearly six months ago.
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Bank of America Merrill Lynch has reshuffled the senior management of its debt capital markets and corporate banking teams in London.
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UK government bonds have suffered their biggest monthly loss in over 20 years this week, although the price had begun to recover by Wednesday morning, with a syndicated tap set for later this month.
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Pakistan’s capital markets are back in business after a few lean years, with M&A deal volume and the Karachi Stock Exchange at record highs, and investors chasing yield in a country now promoted to MSCI ‘emerging market’ status. Rules passing through parliament are expected to underline the country’s reputation as a great place to do business
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Euro issuance this week is very much focused on long dated bonds, with Bank Nederlandse Gemeenten printing a 20 year syndication on Monday and other European agencies and sovereigns looking to tap the long end of the curve via auctions.