AUCTION PREVIEW: Dutch Re-Opening Seen Offering Z-Spread Value
Source: BFW (Bloomberg First Word)
Tickers
3584485Z NA (ABN AMRO Group NV)
People
Kim Liu (ABN AMRO Group NV)
Martin Van Vliet (ING Groep NV)
Richard McGuire (Rabobank International)
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UUID: 7947283
(Bloomberg) -- Netherlands to sell 0.5% 07/2026 for EU2b-3b at 11am CEST; analysts highlight value vs RFGBs and in ASW, supply not expected to be swapped.
Alert: HALISTER1- ABN Amro (Kim Liu)
- Don’t expect the re-opening to be swapped back by using derivatives; Dutch bond will also compete with demand for Austria auction
- Dutch 10Y trades relatively cheap on ASW and Z-spread vs neighboring bonds; DSL/RFGB 10Y spread looks tight
- Rabobank (Richard McGuire)
- Don’t anticipate this tap to be swapped as DSTA strives to achieve its target of an average maturity of 5.5Y at end of 2016
- DSL 2026 looks attractive versus swap, offers ~18bps pick-up
- ING (Martin Van Vliet)
- Despite good performance yesterday, roll vs DSL 07/25 at 13.2bps still looks attractive; 23bps pick-up vs Germany, shows DSL offers decent overcompensation for liquidity
- Attractive to box 5s10s DSL flatteners vs RFGBs, given that Finland might tap the 10Y or 15Y later this quarter, and new 5yr DSL due next month
Source: BFW (Bloomberg First Word)
Tickers
3584485Z NA (ABN AMRO Group NV)
People
Kim Liu (ABN AMRO Group NV)
Martin Van Vliet (ING Groep NV)
Richard McGuire (Rabobank International)
To de-activate this alert, click here
UUID: 7947283