The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Issuers: Long dollars back on line

The possibility that the long end of the US yield curve might continue to invert has supported long-end issuance from international sovereign and supranational issuers.

Both Italy and the European Investment Bank got great execution on 10-year new issues last month. The US two-to-10-year curve has been inverted since June and is now approximately –7 basis points.

For about 18 months, execution in the dollar market has been poor for quality international issuers. This has meant that Italy and other international borrowers were not as active as usual in dollars. But with 10-year treasury yields at six-month lows (4.72%), sovereigns offering a 50bp spread – as Italy did – are now a very attractive proposition for dollar investors.

The Republic of Italy sold $3 billion, upsized from $2 billion, via Citigroup, Goldman Sachs and JPMorgan. The EIB printed $3 billion through Citigroup, Deutsche and JP Morgan at treasuries plus 35bp – around Libor less 18bp.

Italy’s success was probably the most surprising, not least because of the uncertainty surrounding its ratings, budget and government.

“There is good interest for the 10-year maturity, and we probably chose a good window. And there are expectations that the yield curve will flatten in the near future,” says Maria Cannata, director general of the public debt management office at the Italian treasury.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree