FHLB Global Priced, 'Oversold within Hours'

The Federal Home Loan Banks have priced their $3 billion, three-year Global security, which they said was oversold within hours of its announcement. The security (CUSIP 3133XXF8) was priced at 99.818% to yield 1.686% at a spread of 26+ over a comparable Treasury yield. Preliminary distribution information indicates investors were 66% concentrated in the United States. In addition, 22% of the remaining investors were said to have come from "other" miscellaneous regions, a category that can include South American, Canada, Africa, Australia and others. Data shows 7% of the investors were categorized as Asian and the remaining 5% were described as European. Investment advisors/fund managers look to have made up 47% of buyers, 27% appear to be central banks, 10% were categorized as pension funds, 8% were described as financial institutions, 5% were categorized as other, and the remaining 3% were said to be state/local government entities.