July 2, 2021

Supportive technical situation for EA government bonds in H2 2021, but choppier times to follow

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In Short

Euro area treasurers have continued the brisk issuance activity in Q2 2021. After completing more than 30% of the estimated annual sovereign bond issuance in Q1, they have issued almost 60% of the annual volume at the end of Q2.
Supportive technical situation for EA government bonds in H2 2021, but choppier times to follow
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Highlights:

 
  • Euro area treasurers have placed already almost 60% of the estimated annual sovereign bond volume in H1 2021.
  • Amid the well-advanced euro area sovereign bond issuance and the elevated pace of ECB purchases net supply will be negative during H2.
  • This will support euro area sovereign bonds going forward. However, the much less benign cash flow situation in 2022 casts its shadows ahead and confirms our expectation of rising yields.

 

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Supportive technical situation for EA government bonds in H2 2021, but choppier times to follow
July 2nd, 2021
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