19 Dec 2018

Government Bond Data Report Q3 2018

AFME is pleased to circulate its Q3 2018 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).

Report highlights include:

  • Average daily trading volumes of European government bonds decreased by 7.2% YoY during 3Q18, driven by a significant decrease in Sweden (-46% YoY) and German (-18% YoY) trading, only partially offset by increases in Ireland (17% YoY), Belgium (24% YoY) and Hungary (24% YoY).

      This quarter also saw the lowest trading volume since records began in 2013                according to MarketAxess.

  • European Government bond and bills gross issuance declined by 2.1% compared to 2Q18 and was 2.6% below the volume issued in 3Q17.
  • During 3Q18 there were 6 long-term credit rating upgrades for EU countries (following 8 in 1Q18 and 3 in 2Q18) and no downgrades. This reflects significant credit quality improvements of European sovereign issuers, particularly of southern European and CEE countries, bringing the YtD total to 19 upgrades and 1 downgrade (2 further upgrades so far in 4Q18 and 1 downgrade).
  • Record breaking Q3 2018 issuance in Cyprus following credit rating upgrades: Continuous improvements in credit quality have facilitated the issuance of bonds with longer maturities and lower coupon rates.

    Multiple large issuances in July and a record breaking 10-year €1.5bn bond issued in September directly utilised the advantageous credit conditions. At 2.35%, the yield on the September bond represents the lowest yield ever achieved in Cyprus for a Euro-denominated syndicated issue