Deutsche breaks bond dry-spell

DEUTSCHE Bank yesterday ended a debt sale drought across Europe by successfully raising €1.5bn (£1.3bn) in long-term funding.

The bank became the first European institution to sell senior unsecured bonds since the start of the summer, when both investors and issuers fled the turbulent debt markets.

Deutsche’s two-year bonds were offered at 98 basis points over the three-month Euribor rate – well above the spread it offered during its last issue in February, suggesting the markets remain jumpy over taking on more banking debts. Buyers were said to be mostly from Germany.