Euro Rates Watch – Final 5 year Dutch tap following Macron victory

by: Kim Liu

  • The DSTA will auction its 5y benchmark for the last time tomorrow
  • The target range is EUR 2-3bn, we expect an issuance size at the low end of the range
  • The Dutch transaction will take place in rather favourable market conditions, after Macron won the second round by a wider margin than polls suggested
  • We calculate that after tomorrow’s deal the Dutch year-to-date funding will increase to 55% of our annual bond target of EUR 31bn
  • The Dutch 5y benchmark is cheap in ASW vs its own peers, while French bonds seem to have run their course and look therefore stretched
Euro-Rates-Watch-Final-5-year-tap-following-Macron-victory.pdf (226 KB)

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