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MIDEAST DEBT-Oman scores bumper bond sale as investors shelve debt worries

Oman saw bumper demand in its first dollar-denominated sukuk sale since 2018 on Tuesday, as the rise in oil prices over the last year and a fiscal consolidation plan helped investors shelve worries about a break-neck rise in debt levels.

UPDATE 1-Euro zone yields near lows, demand at bond auctions pre-ECB

Austrian debt issuance for 2021 to hit new record

By Reuters Staff 1 Min Read VIENNA, May 31 (Reuters) - Austria’s debt issuance for 2021 will surpass last year’s record as it will have to sell more bonds to cover the larger-than-expected budget deficit due to coronavirus lockdowns, its treasury said on Monday. In an update to its annual funding outlook, the Federal Financing Agency (OBFA), which refers to itself in English as the Austrian Treasury, increased its forecast for total issuance across all instruments to 65 billion-70 billion euros from the roughly 65 billion euros ($79 billion) announced in December. “(Last year) it came out at 63 billion. This year we will definitely be above that. And now we have to see how things develop,” OBFA’s co-chief Markus Stix said in a telephone interview. The government has already said this year’s budget deficit will grow to around 8.4% of gross domestic product. ($1 = 0.8203 euros) (Reporting by Francois Murphy; Editing by Andrew Cawthorne)

UPDATE 2-EU to kick off pandemic plan with 10 bln euro bond issue -French minister

The European Union plans to kick off its 750 billion euro ($917 billion) pandemic recovery package with an initial 10 billion euro bond issue, France's junior minister for European affairs, Clement Beaune, said on Monday.

Dovish ECB compresses Italian bond spreads ahead of debt sale

Italy to sell 5.5-6.5 bln euros of bonds in auction German yields up ahead of U.S. Core PCE data Euro zone periphery govt bond yields tmsnrt.rs/2ii2Bqr LONDON, May 28 (Reuters) - The gap between Italian and German bond yields was at its narrowest in more than a fortnight on Friday ahead of an Italian bond auction, as the promise of European Central Bank largesse helped push Italy’s borrowing costs down for a second week in a row. Italy is due to sell between 5.5 billion and 6.5 billion euros of five-year and 10-year bonds in an auction later on Friday, and the dovish reinforcement of the ECB in recent months should help support demand, market observers said.

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