Agency spreads widen; FHLB's new two-year global heard upsized to $4 billion

By Lisa Kerner

Charlotte, N.C., June 10 - Agency spreads were "mostly out" on Wednesday, according to a trader.

The three-year sector widened about 2 to 3 basis points, the five-year sector was out "a couple basis points," and the remainder of the curve was wider by "about one basis point," said the trader.

Federal Home Loan Bank System announced a new two-year global sized at $3 billion - but the trader heard the deal had been upsized to $4 billion.

The offer was "well oversubscribed" and the deal "went really well," according to the trader.

The trader said he heard the deal will price at 34 bps over two-year Treasuries.

FHLB will set terms on the new issue on Thursday.

Lead managers for the issue are Barclays, Deutsche Bank and Goldman Sachs, FHLB said.

Citigroup will be the senior co-manager. The syndication team will include nine co-managers and a distribution group, according to the agency.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.