Rentenbank

Guarantor: Federal Republic of Germany

Outside observers may have been surprised to see European bond markets reopen after a short summer break this week. However, those involved in the market thought it a sensible move, write Nigel Owen, Craig McGlashan and Tyler Davies.

Nederlandse Waterschapsbank brought some supply to the sparse long end of the SRI market on Tuesday, printing a trade that alongside Rentenbank was part of a strong re-emergence of euro supply after the summer.

The euro market for public sector borrowers appears to be fully reopening after the summer break, with a pair of issuers bringing mandates in very different tenors. Both trades are likely to benefit from the lack of supply over the last few weeks, said bankers.

This week's funding scorecard looks at the funding progress various European supranationals and agencies have made in their funding programmes.

The week commencing May 8 brought a wave of public sector borrowing. The victory of Emmanuel Macron in the French presidential election caused a wave of relief and signalled a blazing green light for issuance. See how the deals fared on GC BondMarker.

Public sector borrowers in the euro market on Thursday focused their attentions on the long end of the curve, but not every trade made it to full subscription.

The European Financial Stability Facility has sent requests for proposals for a trade next week, as a pair of rare issuers on Wednesday placed deals flat to or through fair value in a euro market buoyed by Emmanuel Macron’s election as French president last weekend. Longer dated trades — of which the EFSF has sold several this year — also look to be back on the table for borrowers.

This week's funding scorecard looks at the progress European supranationals and agencies have made at the start of the second quarter.

This week's funding scorecard looks at the progress European supranationals and agencies have made during the first two months of the year.

The Province of Ontario and Rentenbank tapped bonds at the long end of the Kangaroo curve this week, while the Asian Development Bank (ADB) mandated banks for a new Australian dollar bond.

The prospect of a far-right leader becoming president of France rocked government bond markets this week. It led to a rare pulled French agency deal and will cause the country’s banks problems with their own huge funding needs. But as other issuers in eurozone countries facing elections showed, the picture of the risks ahead is complicated. Craig McGlashan reports.