Sunday, September 21st, 2025
Home »Stocks and Bonds » World » Rare 50-year French bond sees heavy demand

  • News Desk
  • Feb 23rd, 2005
  • Comments Off on Rare 50-year French bond sees heavy demand
A French government bond sale with a rare 50-year maturity dominated the European bond market on Tuesday, as demand surged to 19 billion euros ($25.07 billion) and the triple-A-rated issuer narrowed price guidance. The FTSE Euro Corporate Bond Index showed investment-grade corporate bonds in euros yielding an average 39.6 basis points more than similarly dated government bonds at 1601 GMT, 0.9 basis points less on the day.

Secondary trading was slow with the primary market taking up focus for the day. "There is some weakness in the long GM, but everything else is just about holding steady," said a bond trader in London.

General Motors' 8.375 percent euro bond due in July 2033 was bid 6 basis points wider at 418 basis points over government debt.

Its rival Ford's 5.75 percent euro bond due in January 2009 was one basis point wider at 167 basis points over government debt.

France revised price guidance on its 50-year euro bond to 3 to 4 basis points over the 30-year OAT on Tuesday.

Price guidance was initially in a range of 3 to 7 basis points over the 2035 French government bonds, but was then revised to a range of 3 to 5 basis points.

The country's debt agency said previously the bond would be worth a minimum of 3.0 billion euros.

Barclays Capital, BNP Paribas, Deutsche Bank and HSBC are lead managing the issue.

Also in the primary market, Denmark refined the price talk on a planned 5-year bond, adjusting the yield on offer to 16 basis over the OBL 145 German government bond from 15.5 to 16.5 basis points over, a syndicate source said.

Investor demand for the issue, due in October 2010, had reached 2.1 billion euros, the source said.

The Danish central bank said in December it planned to issue a five-year bond of 1.5 to 2.0 billion euros in the first half of 2005. It said then that the domestic borrowing need for the country was 67.7 billion Danish crowns ($11.88 billion).

Denmark is rated triple-A by Moody's Investors Service, Standard & Poor's and Fitch Ratings. Barclays Capital, Danske Bank and J.P. Morgan are managing the sale.

Copyright Reuters, 2005


the author

Top
Close
Close