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The article reports that the euro swap curve have steepened following developments in the U.S. market and the disappointing Eu5.39 billion sale of 30 year paper of Germany in January 2006. There is a possibility that Japan may end its zero interest rate policy in the near future. The Eu5 billion 15 year asset swap spread of BTP from Italy is the biggest issue during the period.

The article presents credit ratings and assessments for issuers and guarantors of yen-denominated bonds. The Federal Republic of Germany receives a credit rating of Aaa/AAA/AAA for its ¥50 billion bond offering with a coupon rate of 1.35%, while Renault SA receives a credit rating of Baa1/BBB+/BBB+ for its ¥50 billion bond offering.

The article reports on the five-year Eurodollar bond issued by Japan Finance Organization for Municipalities (JFM) and on the issuance from Rentenbank of Germany. The deal from JFM had closed at over 2.5 billion U.S. dollars with banks taking 45.6% of the trade. It discusses the response of investors to the bond from German agency, Rentenbank.