Euro agencies get their fill

Meanwhile in the domestic bond market last week, Caisse d'Amortissement de la Dette Sociale (CADES), European Investment Bank and Bank Nederlandse Gemeenten raised a combined A$1.3 billion.

CADES raised A$500 million for three years at 40 bps over bank bills via a private placement.

EIB added the same amount to its May 2014 line at a margin of 30 bps over swap or 87.75 bps over CGS. This is the fourth top-up EIB has made since opening the line in May this year, and takes outstandings to A$2.4 billion.

Pricing has varied considerably over the period as credit spreads have narrowed but the basis swap has widened. The line was opened at a spread of 112 bps over Commonwealth government bonds but narrowed to 60 bps over for the second top-up in September. Since then the spread has been widening again.

Dutch funding agency Bank Nederlandse Gemeenten made a rare issue of A$300 million of three-year floating rate notes, priced at 47 bps over bank bills.

BNG had been a relatively prolific issuer in this market but not since November 2006. It currently has A$1480 of bonds outstanding, with maturities ranging from July 2012 to September 2015.