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'Dead quiet' few weeks will benefit issuers as excess bonds need absorption before issuance starts to ‘fire on all cylinders’ from August 17
Supplying a ‘diversity of instruments’ is important for sovereign to meet needs of different investors, says DMO chief
◆ First of two planned linker syndications for 2026-7 executed swiftly ◆ Earlier book open, quick three hour execution to limit risk ◆ £93bn of Gilts issued off year's £246bn programme since April 1
Sovereign issuer overcomes challenges to revive public dollar presence after half a decade’s silence
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UK chancellor of the exchequer Philip Hammond abandoned on Monday his predecessor’s ambition to pay off the country's public debt by 2020 but renewed its commitment to fiscal consolidation. SSA bankers responded by predicting higher government borrowing.
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Latvia saw strong demand for a new 10 year euro deal against a choppy market backdrop on Friday.
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Peru took advantages of renewed enthusiasm for its economy and highly favourable market conditions to sell PEN10.252bn ($3.02bn) of 12 year sol-denominated bonds as part of a liability management exercise on Wednesday and Thursday.
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Ecuador surprised some bond investors by doubling the size of its 2022s on Tuesday despite being unable to tighten pricing from initial price thoughts.
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Turkey’s spreads have not recovered almost a week after Moody’s junked its credit rating, but bankers insist the sovereign and other Turkish borrowers will have access to the capital markets once stability has returned, even if borrowing costs rocket. Virginia Furness reports.
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