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Sub-sovereigns

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First Canadian province to visit euros in 2026
◆ Cautious start after spreads moved around ◆ KfW's spread tightens, but Länder unmoved ◆ ‘Real’ Länder-KfW spread yet to be established
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German sovereign goes for conventional over green as smaller peers join a crowded Tuesday
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Primary market shows strength but pockets of weakness a reminder that ‘1bp could make all the difference’
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  • The Province of Ontario hit screens on Tuesday afternoon with initial price thoughts for a C$750m no-grow tap of the February 2025 bonds.
  • The Province of Ontario is readying for a tap its 2025 Canadian dollar denominated green bond for the second time this year.
  • The State of North Rhine Westphalia (Land NRW) was the only public sector borrower to announce a euro benchmark transaction on Monday, as it appointed banks to lead new 10 and 20 year sustainability bonds.
  • The wave of UK local authorities set to enter capital markets after the central government started charging them more for borrowing began to break this week as Redbridge Council raised £75m through a deferred bond. In doing so, it achieved better costs of funding from the market than it would from the Public Works Loans Board. More councils are set to follow.
  • SSA
    Redbridge Council raised £75m through a deferred bond this week. A banker close to the deal said other local authorities would be following close behind.
  • SSA
    A pair of public sector borrowers hit the dollar market this week, pulling off strong deals at three and five years. Both enjoyed a clear field as euro-based borrowers stuck to their home currency thanks to an unpalatable basis swap rate.