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)
Download

DISCLAIMER: This report has not been prepared in accordance with the legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead. This report is marketing communication and not investment research and is intended for professional and eligible clients only.