Bonds - EUR
Utility companies and covered bond issuers led a mixed pack of borrowers in EUR today.
Bund ASWs remain under pressure but some traders are wary about fading the move. Citi expects 30s/50s to keep flattening given regulations.
Talk of pension funds playing it safe and shifting exposure from 20y to 30y ahead of possible LLP changes. Commerz looks at the German LCR exodus.
Long-dated ASWs are tighter as markets eye reverse yankee issuance and more pension fund receiving. HSBC examines DNB and Solvency II reforms.
MTN issuance included more bank callables, a handful of repacks and a few long vanilla bonds print over the last week.
JP Morgan announced an 8y NC7 today while Dow Chemical's multi-tranche deal is on the slate for next week.
Dire warnings of the risks of corona-contagion on the London underground and the sudden resignation of the Chancellor were the drivers today.
B/Es have rebounded after the recent sell off as buyers take advantage of current levels. Swaps are also bid, but there is more interest in cash.
Virus sparks reversal and traders forecast the corporate sector will soon feel the pinch.
Names expected to price deals today include The World Bank, VF Corp, Ford and ING Belgium.