In the past week it was no longer just the sound of hoof scraping, the horses on the bond market had long since started galloping.

23 companies issued 38 euro bonds totaling 22.2 billion euros.

There was no higher weekly volume in 2021.

The turnaround in interest rates that is becoming apparent is driving companies to refinance quickly, even if interest rate hikes by the central banks in the United States are still imminent and will probably be a long time coming in Europe.

Gregory Bruner

Editor in Business.

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In the UK, Eastern Europe and parts of East Asia, central banks have already acted in anticipation of the US Fed and the European Central Bank (ECB). Nevertheless, a harbinger of rising interest rates is the development of the yield on the ten-year federal bond, which on Wednesday was above zero for the first time since May 2019. A tactical repositioning towards it and its US counterpart can be observed on the market. After the cold night of years of ultra-low interest rates, investors are smelling the dawn of younger, better-yielding alternatives.

Not surprisingly, states and supranational organizations are taking part in the race. The European Union (EU) still secures the relatively low interest rate of 0.4 percent with a 15-year green euro bond. The expected return is therefore limited, but the minimum denomination of one euro and a rating of “AAA” by the rating agency Fitch at least suggests stability, even for little money. Belgium is also involved. 0.35 percent interest over ten years is a little shorter than the EU, but with a minimum denomination of one cent it is an even more liquid alternative.

The Council of Europe Development Bank places two foreign currency bonds, each with higher interest rates than might be necessary in euros. Both the Norges Bank and the Bank of England had already raised their interest rates at the end of last year and further steps could follow this year. The sterling bond secures the development bank 1.25 percent interest for a good four and a half years, the bond denominated in Norwegian kroner 1.99 percent interest for six months longer.

In Germany and Austria, several banks are again reporting new issues at the end of the low-interest phase. The best interest rates can be obtained from Bayern LB, which offers 0.51 percent. However, the entry hurdle is quite high at 50,000 euros, but the five-year term is rather short. Two of the largest savings banks in Germany and Austria come up with 0.45 percent. Erste Group has the staying power with a term until 2029, while Hamburger Sparkasse's bond matures in 2028. The latter is cheaper at 10 euros compared to 1000 euros. Berlin Hyp, which is about to be sold, is offering a five-year bond with an interest rate of 0.375 percent for a minimum denomination of EUR 100,000.

US banks, just coming off a sluggish earnings season, are looking for buyers before the Fed gets serious.

Goldman Sachs issues a new floating rate bond in dollars, Citigroup in euros at 1 percent.

If you want to commemorate the low interest rates for another ten years, you can grab the new bond from the Austrian Raiffeisen Bank International.

At the end of the day, you only get back what you paid for.