The European Central Bank managed to steer around the topic of tapering its asset purchase programmes at its monetary policy meeting on Thursday, but with growth and inflation increasing rapidly, the debate is going nowhere, and economists believe a fight is brewing for the September meeting.
By Lewis McLellan, Mike Turner
03.30 PM
Bond market participants will be on tenterhooks for the European Central Bank’s latest monetary policy decision on Thursday. The rapidity of the European recovery, and the apparent return of inflation have stoked fears that the ECB would begin to discuss tapering its asset purchase programmes.
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Two SSA borrowers sold dollar paper on Thursday. Council of Europe Development Bank achieving the tightest spread to mid-swaps from a public sector borrower this year, breaking a record equalled earlier this week by Asian Development Bank. At the other end of the curve, Inter-American Development Bank made its debut at the 10 year maturity with a deal linked to the Secured Overnight Financing Rate (Sofr).
Société Générale will run the books for the deal, and have offered initial price thoughts of 2bp area through mid-swaps.The trade comes on the heels of a pair of bonds from Asian Development Bank. The supranational hit the
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