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2026-11-05 17:54:30
[Following Meta Bond Pricing, Euro Swap Spreads Mostly Narrowed] ⑴ Meta completed the pricing of €9 billion in six tranches of bonds after the market closed on Wednesday, resulting in a narrowing of euro swap spreads for maturities of at least 10 years. ⑵ The spread between the Euro Interbank Offered Rate (EURIBOR) and the 2-year German government bond yield narrowed by 1.2 basis points, while the spread between the ESR (Overnight Index Swap) and the 2-year German government bond yield narrowed by 0.7 basis points. ⑶ The spread between the EURIBOR and the 5-year German government bond yield narrowed by 0.8 basis points, and the corresponding spread for the ESR narrowed by 0.5 basis points. ⑷ The spread for the 10-year German government bond yield narrowed by 0.4 basis points, while the spread for the 30-year German government bond widened by 0.4 basis points. ⑸ Analysts believe that most, or even all, of the bonds issued by Meta this time have likely already been swapped, meaning that the issuance has put tightening pressure on swaps. (6) Unlike the massive bond issuances by US tech companies, this issuance initially generated overall buying interest in the Eurozone interest rate market. (7) Overall, the large-scale Eurobond issuance by Meta caused short-term disruptions to the spread structure of the Euro swap market, with a more pronounced tightening at the short to medium end.
