Reuters: US Dollar Report: UPDATE 1-Lead managers to make decision on EFSF bond

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UPDATE 1-Lead managers to make decision on EFSF bond Apr 24th 2012, 08:49 Tue Apr 24, 2012 4:49am EDT By Helene Durand LONDON, April 24 (IFR) - The European Financial Stability Facility (EFSF), rated Aaa/AA+/AAA, is due to hold a call at 0845GMT with lead managers HSBC, Morgan Stanley and Natixis to decide whether to launch a seven-year benchmark bond today, a lead manager said. The issue is expected to raise between EUR3bn and EUR5bn and will be a test of investor appetite for the eurozone bail-out fund following a renewed bout of volatility in core and peripheral sovereigns. The Dutch state raised just under EUR2bn via auction today, in the middle of the EUR1.5bn to EUR2.5bn target range. This was the first auction by the DSTA since the collapse of the government over budget talks at the weekend. Meanwhile, the outcome of the French elections has put pressure on the French government curve. "If they go ahead with the deal, they will need to offer a decent concession given the current market backdrop," said a banker away from the trade. EFSF's curve has widened in recent days. According to Tradeweb, the issuer's May 2017 has widened by 8.5bp in the past week and was 1bp wider today at 44.8bp over mid-swaps. Meanwhile, its February 2022 has widened by nearly 10bp over the same time period and was quoted at 87.5bp over mid-swaps. The underperformer on the curve however is the July 2021 issue which is 11.5bp wider over the week and was quoted at 85.2bp this morning. Link this Share this Digg this Email Reprints

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