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◆ Issuer's first benchmark after after active start of year in PPs ◆ Deal attracts big book despite large tightening ◆ Only KfW priced with lower spread to USTs this year
International interest for German paper has grown
ESM priced new €2.5bn 10 year at flat to EIB
◆ Issuer's first green benchmark in 2026 ◆ Blended premium estimated ◆ Central bank/official institution allocations 'notable and high' for green label
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No Pepp talk from Lagarde relieves market participants but issuance could face ‘headwind into next year’
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Pricing, efficiency, governance and political considerations will shape new market
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Despite rush of agency deals in dollars, pinpointing fair value is hard
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Unconventional techniques serve issuers well in volatile times
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Market believes ECB will hold rates but is jittery about an earlier unwinding of pandemic era bond buying scheme