The same narrowing had occurred in 10-year Deutschmarks, with the World Bank's yield advantage over the EIB falling from 5bp to 2.5bp. Across a range of currencies and maturities the degree varies, but consistently the gap is closing. The whole funding approach of the EIB is different now. The funding team must not become over-reliant on one source of information. But that kind of advice can stick in the throat.
Some borrowers take comfort from what they have done before.
They price off their existing paper and so, sometimes, misprice. It's not just accountability they gain. In the white category is the issuer who trusts the bank who has been visiting him for years. He wants to do a successful issue and knows that the capital markets are an expensive exercise anyway. Whether he pays 300bp, 310bp or 325bp over Treasuries is neither here nor there.