Nederlandse Waterschapsbank

Investors are lining up to pour cash into the public sector primary market, with deals in dollars and euros gathering big books — even when offering negative yields.

A trio of issuers on Tuesday mandated for dollar deals across the shorter end of the curve, as underlying US Treasury yields stayed slightly elevated after last Friday’s meeting of central bankers in Jackson Hole.

A dance of low yield limbo is forcing public sector borrowers to rewrite their autumn funding plans as crushed rates have made the short end of the euro curve all but inaccessible. Lewis McLellan reports.

Nederlandse Waterschapsebank has pushed the funding boat out in euros, by selling a rare 50 year MTN.

NRW.Bank will on Tuesday become the latest public sector borrower to enter a super strong dollar market that shows no sign of shutting down for the summer, after the German agency mandated banks on Monday.

See how World Bank and NWB's benchmarks scored in GC BondMarker

Last week's new benchmarks are available to rate on GCBondscore.

World Bank reopened the SSA market on Wednesday with a $5bn three year dollar deal that met with a rapturous reception from supply starved, but cautious, investors.

Rating: Aaa/AAA

A pair of bumper dollar deals from top-tier borrowers reopened the SSA benchmark market on Wednesday after a two-week hiatus, drawing something of a line under a period of market uncertainty.

With the hree new issues in the market this week progressing well, the SSA market seems to have put Brexit chaos in the past and returned to business as usual.

Nederlandse Waterschapsbank will tomorrow print the first benchmark since the UK shocked markets with a vote to leave the European Union on June 23.