AUCTION PREVIEW: Ireland Six-Year Bond Seen Attractive on Curve
Source: BFW (Bloomberg First Word)
People
Martin Van Vliet (ING Groep NV)
Anders Lumholtz (Danske Bank A/S)
Anders Moeller Lumholtz (Danske Bank A/s)
Peter Chatwell (Mizuho Financial Group Inc)
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UUID: 7947283
(Bloomberg) -- Ireland to sell 0.8% 03/2022 for EU750m at 11am CET. Analysts see the bond as being attractive on the curve and vs France; they also highlight the bond’s richness in repo.
Alert: HALISTER1- ING (Martin van Vliet)
- Bond trading below -1% in repo yesterday, has cheapened more than 5bps vs OATs since the beginning of the month
- Seems scope for Ireland to make renewed/further progress in its transition toward semi-core status, probable rating upgrade from Moody’s tomorrow
- Given strong trade links with U.K. convergence to semi- core may be delayed until after Brexit vote on EU
- Mizuho (Peter Chatwell)
- 6Y Irish spreads vs OATs have widened in excess to what their relationship with the Italy/Germany 5Y spreads suggests; now just 45bps, where support has repeatedly been found
- In relative value, May 22 stands cheap on the Irish fitted curve, has been cheapening; auction bond attractive on spread and in relative value
- Danske Bank (Anders Moller Lumholtz)
- Bond looks very cheap vs France as Brexit concerns have weighed; announcement caused cheapening of the bond that is now trading special, should attract strong demand
- ECB QE will buy ~EU8b in Irish bonds in the remainder of the year, supports spread compression vs semi-core peers
Source: BFW (Bloomberg First Word)
People
Martin Van Vliet (ING Groep NV)
Anders Lumholtz (Danske Bank A/S)
Anders Moeller Lumholtz (Danske Bank A/s)
Peter Chatwell (Mizuho Financial Group Inc)
To de-activate this alert, click here
UUID: 7947283