Investors take QE bet via Spain 10-year

摘要

Investors snapped up the kingdom of Spain's new 10-year bond last Tuesday in anticipation of the ECB's announcement of a quantitative easing programme later in the week, a bet that appeared to pay off after a larger-than-expected package pushed the new notes dramatically tighter. A hefty order book of €22.8bn allowed the sovereign to issue a €9bn 1.6% April 2025 bond. A final spread of 92bp over mid-swaps appeared to offer just a 4bp new-issue premium to the outstanding curve, a particularly tight level considering the deal size, bankers on and away from the deal said.