Insider Economy Ireland, Slovenia, Portugal open euro zone's 2020 bond ledger

Ireland, Slovenia, Portugal open euro zone’s 2020 bond ledger

Ireland, Slovenia and Portugal opened euro zone government bond deals for 2020 on Tuesday, with analysts expecting heightened geopolitical risk to mean new supply should be easily absorbed by investors keen to hold fixed income.

January is usually a busy period for government bond sales, both at auctions and via bank syndication, with Tuesday’s flurry of syndicated bond deal announcements expected to boost issuance volumes for the month.

Slovenia launched a 10-year bond deal, while Ireland is looking to raise around 3 billion euros from a 15-year bond, a market source told Reuters. Portugal, meanwhile, has mandated banks to manage the sale of a new 10-year government bond, maturing in October 2030, soon, sources said.

“This is the first real day of broad-based new issue activity in the new year, and we are seeing lots of activity in the primary market, which is encouraging,” said Povl Bak-Jensen, head of syndicate at Nordea.

“We are entering 2020 on the back of a strong close to 2019, we’ve had some geopolitical turmoil, but hopefully this will not spread.”

Gross eurozone government bond issuance via auctions is likely to come in around 65 billion euros ($72.55 billion) this month, but this number could top 100 billion euros given syndication, ING bank said in a note.

Dublin, which has begun its funding drive with a syndicated sale every year since 2013, had mandated banks for the sale of the new bond soon, a lead manager said.

“We were expecting a 10-year issue at around 4 billion euros, looking at past examples,” Richard McGuire, head of rates strategy at Rabobank in London, said.

“The fact that it is a 15-year issue was a bit of a surprise, but Ireland is performing well on the back of the announcement,” he said of the Irish secondary bond market.

The closely watched gap between Irish and German 10-year bond yields was tighter at 29 basis points, versus 34 bps in late Monday trade.

Slovenia opened its sale of a new 10-year bond, which it hoped would raise 1.5 billion euros. Lead managers reported strong demand strong with orders in excess of 11.75 billion euros.

ING said it anticipated Belgium, Austria, Spain and Greece to all come to the market with deals in the coming weeks. (Reuters)

 

Top Stories

Paris knife attacker suspect confesses

  The man believed to have attacked and wounded two people with a meat cleaver is cooperating with the police and said he had targeted...

UK has no intention of approving direct flights to occupied north Cyprus

  The British government has once again officially made clear that it has 'no plans to approve direct flights between the UK and north Cyprus'. The...

Suspected accomplice of Paris knife attacker released

  A suspected accomplice of a man believed to have attacked and wounded two people with a meat cleaver yesterday in front of a Paris...

UK may be moving too slowly to tackle COVID-19 outbreak, government adviser says

  Britain could be moving too slowly to tackle the sharp rise in COVID-19 cases because of a lag between case numbers and deaths which...

Dozens on the dance floor at Famagusta club, 1500 euro fine

  A night club and reception area owner in Famagusta was fined 1500 euro late yesterday, after dozens were found dancing at close proximity in...

Taste

Sheftalies

Sheftalies, a very tasty dish from the charcoal grill, are minced meat shaped into small sausages and wrapped in “panna” (suet). Panna is a...

Spicy grilled soutzoukakia

Place all ingredients for soutzoukakia in a bowl and mix well, preferably using a food processor, until well combined. Using the mixture, form cigar-shaped...

Souvlakia

Pork souvlaki: Put the meat and all the other ingredients in a bowl (not metal) and mix well. Cover the bowl and keep in...

Pastelli (Carob Toffee)

The nutritional sweet of Pastelli is made with the syrup of carob pods, produced by boiling their pulp until it forms a thick, sticky...