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Portugal and KfW lead euro supply with five year as dollar market focuses on second AfDB hybrid
◆ Tightest 10 year Länder bond this year ◆ Big book leads to 4bp spread move ◆ Deal still three times covered, green element was key
◆ One deal was judged ‘relatively tight’... ◆ And the other ‘definitely cheap’... ◆ ... though fair value tough to spot
Issuance recovers from last week’s wobble but concerns linger after issuers like KfW widen
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The European Banking Authority has closed off all routes around the bonus cap, with new guidance published on Wednesday.
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North Rhine-Westphalia on Wednesday became the first German Land to sell a socially responsible bond, pricing its debut sustainability bond flat to its curve.
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North Rhine-Westphalia will hit the 10 year part of the euro curve with its debut sustainability bond, which is expected to be priced this week.
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Madrid has raised 15 year cash with its second bond in as many weeks — and the borrower’s sovereign could break its yield record at a similar tenor on Thursday.
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A pair of issuers have mandated banks to run euro syndications ahead of a European Central Bank meeting on Thursday.
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