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OATs and OLOs could weaken further versus Bunds while southern European countries and EU continue to paint a positive picture
Uncertainty looms large as presidential race far from clear and budget negotiations potentially ‘highly challenging’
Summer in full swing but first two weeks of August not completely off the cards for non-euro deals
◆ Oil slides, easing inflation fears ◆ Vote split and September QT signals to set tone for Gilts ◆ Oil-driven hike pricing unwinds days before the Bank decides
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The yield on Portuguese government debt fell on Wednesday after socialist leader Antonio Costa was named prime minister. The new government is expected to bring some stability after several weeks of uncertainty.
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The UK Debt Management Office must raise an additional £4.5bn to meet Chancellor of the Exchequer George Osborne’s revised spending as outlined in Wednesday’s Autumn Statement.
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Support from US fund managers helped Macedonia price a new sub-benchmark euro-denominated deal comfortably inside initial price thoughts on Tuesday despite rising geopolitical risk.
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European bond markets have shown remarkable resilience to international political tensions this week, but with the US market out on Thursday for Thanksgiving, the primary markets are expected to remain quiet.
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Macedonia has emerged with a new five year euro-denominated bond offering a new issue premium of over 50bp at the initial guidance stage, according to two syndicate officials away from the note.
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Read on to find out how selected European sovereigns are faring in their funding programmes this year.