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New issue premiums in recent weeks were lower compared to the highs after the Iran-US conflict began
◆ Only 4bp paid over theoretical new KfW ◆ Länder bonds continued to be seen as expensive ◆ Will bank treasuries switch to EIB from Länder?
Mandates from Eurofima, Germany, Wallonia and the Free State of Thuringia
◆ Pricing was tricky after Hamburg’s recent five year ◆ Is 7bp the new magic number for Länder? ◆ Five year demand lacking, Thuringia to test 10 year
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Three issuers hit the market on Thursday, as pipeline builds for next week
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A dollar deal may be on the cards after a recent sterling trade
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‘Difficult’ few weeks ahead as negative Bund-swap and wide SSA spreads take toll
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◆ Cross-currency basis swap moves make trade feasible ◆ Fair value hard to locate after Gilt movement ◆ Book almost covered
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Domestic names rush to hit the market ahead of expected volatility next week
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Relative value mismatch between core and non-core issuers is one of many concerns