20 Mar 2019

Government Bond Data Report Q4 2018

AFME is pleased to circulate its Q4 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:                                                           

  • The lowest annual average trading volume since 2013 was observed in 2018, according to MarketAxess. 
  • The average bid-cover ratio (demand/amount allocated) was 2.14 in 4Q18, showing no YoY change from 4Q17 however a decrease from 2.19 in 3Q18. The largest rise in bid-cover ratio was observed in Denmark, which increased 52% YoY and 41% QoQ to 2.66 in 4Q18. 
  • During 4Q18 there were 3 long-term credit rating upgrades for EU countries (following 8 in 1Q18, 3 in 2Q18 and 6 in 3Q18) and 1 downgrade, bringing the 2018 total to 20 upgrades and 1 downgrade. This shows substantial credit quality  advancement of CEE and southern European countries, as all rating actions concern member states in these regions. 
  • Following 20 Primary Dealers leaving the market in 2018, the EU now has the lowest average number of Primary Dealers since the financial crisis. France now has 15 primary dealers, the lowest since records began, in 2006. 
  • In the Eurozone there are clear signs of fiscal consolidation over the last 10 years, with issuance volumes in 2018, at €1.8 tn, being 31% lower than the record issuance in 2008 of €2.6 tn. 
  • Annual issuance of EU Sovereign Green Bonds increased 40% in 2018. After issuance from Ireland in 4Q18, 5 EU countries now have green bonds outstanding.