EU Prices EUR 5 Billion 2015 Bond At Swaps + 12

RanSquawk reports that the European Union has priced the marketed EUR 5bln 2015 bond, 2.5% interest, at 99.594 reoffer, swaps +12 BP, according to Leads. As a reminder, this is what Brian Yelvington had to say about this notable issue early today: "The €5B EFSF debt sale scheduled for today was reportedly 3x oversubscribed with pricing expected to be mid swaps +15bp.  The markets should keenly watch the actual pricing of the deal and its secondary trading as well as the knock-on impacts on traditional Euro sovereign issuance.  We still believe that a finite capped facility that effectively crams down traditional issuance will cause further pressure on spreads.  A new EU draft proposal suggests that bondholders take losses on ailing banks rather than upstreaming the responsibility to the sovereign level and bailouts being taxpayer funded."

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