15 Mar 2017

Government Bond Data Report Q4 2016

AFME is pleased to circulate its Q4 2016 Government Bond Data Report.

This report provides a comprehensive data source with updated statistics of the Government bond primary and secondary markets in Europe (EU28).

Among the main findings of this report:

Main findings:

  • Average daily trading volumes of EU government bonds increased 16% QoQ in 4Q16, although with notable differences between countries.

    For 2016FY, average daily trading volumes decreased 7.2% YoY, continuing the annual decrease observed in 2015 (-8.4% YoY).

  • Decrease in number of Primary Dealers (PDs): The number of PDs decreased over the last year in 10 of the 23 EU jurisdictions with PD systems; increased in 6 countries; and remained the same number in the remaining 7 EU Member States.

    In 2006 there were on average 22.6 PDs in EU countries, comparable with 19.2 in 2011 and 18.2 in 2017. (For the EU countries where information has been consistently compiled since 2006).

  • European Government bond gross issuance totaled €2.54 TN in 2016, a decrease of 2.6% from the volume originated in 2015 (€2.61 TN).

  • Of the instruments issued in 2016 through auctions, average bid-cover ratios increased steadily in each quarter of the year, from a 6-year low in 1Q16.

  • Continued improvements to fiscal balances led to further credit ratings upgrades in 4Q16. Three EU countries had their long-term credit ratings upgraded during the quarter and one country was downgraded.

    For 2016FY, six EU countries were upgraded, the same number of countries downgraded.