(Bloomberg) — Belgium’s sale of 10-year debt through banks attracted record demand as investors rushed to lock in the highest yields in six months before the European Central Bank reduces interest rates further.
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The debt agency received orders of more than €88 billion ($91.5 billion) for €7 billion of the securities, according to people familiar with the matter who asked not to be identified. The spread was set at 66 basis points over swaps, lower than earlier guidance.
The offering bodes well for a raft of sales still to come. Strategists at Commerzbank AG expect deals from Ireland, Portugal and Italy to follow soon, with France, Spain, Austria, Finland and Germany coming in later weeks. Slovenia is also selling a new 30-year security on Tuesday.
Money markets are betting the ECB will follow up last year’s one-percentage-point of cuts with further reductions to 2% by the end of the year as inflation and growth in the region slow.
Debt syndications are typically more expensive than auctions, but they allow governments to raise large sums quickly while diversifying their investor base. Belgian 10-year borrowing costs were two basis points up at 3.06%, the highest since July on a closing basis.
Bookrunners on the Belgian deal are BNP Paribas SA, Credit Agricole CIB, HSBC Holdings Plc, JPMorgan Chase & Co and Morgan Stanley.
(Updates throughout)
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Publish date : 2025-01-07 06:23:00
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