IFR: 30s talked for EU syndication

The European Union is set to bring another syndicated deal this week, which should be announced today and priced tomorrow.

Expectations are squarely set for 30-year supply, mostly leaning toward a tap, albeit with at least a few suggestions for a new issue.

There is a belief and/or a preference the EU would like to build liquidity in outstanding issues, leaning towards a tap, but proceeding with a syndication implies a preference to get size done, in turn suggesting a tap would be paired with another, presumably shorter dated bond. Alternatively, a single new issue should also get size out the door as well.

This argument, however, is mitigated by two factors...