FHLB prices new $3 billion global bond to high demand; agency spreads tighten

By Lisa Kerner

Charlotte, N.C., April 15 - The Federal Home Loan Banks priced its new $3 billion 1.375% two-year global bond on Wednesday at 54 basis points above Treasuries.

The issue was "substantially oversold in less than 24 hours," according to FHLB.

FHLB said the bond matures on May 15, 2011 and priced at 99.959 to yield 1.395%.

The bond sold primarily in the United States, which took 76%, followed by Asia and Europe, each of which took 6%, based on preliminary distribution information from FHLB.

Agency spreads weren't impacted by the FHLB activity, remaining basically unchanged or maybe "a bit tighter," a source said.

Lead managers for the two-year global were Banc of America, Credit Suisse and UBS Securities. Ten co-managers and a distribution group of seven firms completed the syndication team.

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