STUTTGART (BOERSE STUTTGART GMBH) - Federal/Government Bonds

In the previous week, the dispute over raising the U.S. debt ceiling captivated bond markets around the world. The agreement reached at the beginning of this week in the U.S. debt dispute between U.S. President Biden and McCarthy, the Speaker of the House of Representatives, ensured that the bond markets calmed down again. The Euro-Bund future moved up significantly since Monday and is slightly above 136 points at midday on Wednesday. This week, investors are already turning their attention to the major U.S. labor market report, which will be published on Friday and should bring new insights into the so far robust U.S. labor market. The yield of the 10-year federal bond stands at 2.257%, well below the previous week's level of 2.342%. The yield on the 30-year federal bond has also fallen. A week ago, this stood at 2.498%, currently there is 2.437%.

Investor Trends

Continental pays 4%

Automotive supplier Continental is refinancing itself with a €750 million bond (A351PU). Maturity is on June 01, 2028, and a coupon of 4% is paid during the term. Interest is paid annually, for the first time on 01.06.2024. The minimum amount is 1,000 nominal and corresponds to the smallest tradable unit. S&P assigns Continental a BBB rating with stable outlook.

Bayer with new 750 million bond

German agricultural and chemical company Bayer is raising €750 million in fresh capital via a bond (A351UZ). Investors will receive a coupon of 4.0%, with the first interest payment on Aug. 26, 2023. The bond will be redeemed on Aug. 26, 2026. The minimum amount is 1,000 nominal shares, which is also the smallest tradable unit. It has a Baa2 rating from MoodyŽs.

New Norway Bond

Norway issues a bond (WKN A3LD55) with a volume of 27.41 billion Norwegian kroner. An annual coupon of 3.0% will be paid until maturity on August 15, 2033. The first interest payment will be made on August 15, 2023. 1.0 nominal can be traded as the minimum amount and smallest tradable unit. The rating agency MoodyŽs assigns an Aaa rating.

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Source: Boerse Stuttgart GmbH; www.boerse-stuttgart.de

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