In early August, the VDP had said that it expected members to start quoting prices for all jumbo issues of two years or more at triple bid-offer spreads, regardless of what those spreads were. Dexia Kommunalbank had planned to launch a five-year, public sector Pfandbrief on September 1 but held back in case the resumption of market-making had a negative impact on the market. It did. Spreads across the yield curve widened by four to five basis points, and Dexia pulled its deal.
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