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Guillaume Pichard, assistant deputy minister, on the five year call, the repo boost and the cost versus home
◆ State’s pre-summer deal attracts €2bn book ◆ Maybe only one more deal to come on reduced needs ◆ 2bp NIP to start as issuer tries to ‘be fair to the market’
◆ Canadian province tests post-Starmer sterling ◆ Five year choice keeps the buyers ◆ New issue concession estimated
Nine banks chosen to run £1.5bn borrowing programme
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The Joint Laender reached its 50th deal two months after it was forced to postpone a planned transaction, printing a €1.5bn seven year benchmark that proceeded smoothly this time round.
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The European Union proved that for the right issuers there is considerable demand at the 15 year point of the curve, with the Joint Länder planning a return to the market with a seven year benchmark for the first time since a mooted deal in February stalled.
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Bankers have questioned if the yields available in the euro market will prove sufficiently attractive to prospective investors as the start of the second quarter nears.
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The City of Paris was forced to widen pricing on a 15 year bond offering on Wednesday, with leads blaming the move on a rally in bonds that followed dovish comments from US Federal Reserve chair Janet Yellen on Tuesday.
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Issuers have nipped into the euro market after Easter with some canny deals. Meanwhile the dollar market was watching US Federal Reserve chairperson, Janet Yellen, who on Tuesday said that the possibility of further rate hikes was “not a plan set in stone”.
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The City of Paris is set to follow deals from the European Stability Mechanism and SNCF Réseau last week by bringing a trade at the long end of the euro curve.