AFME Government Bond Data Report Q1 2021 | AFME

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Data Research
AFME Government Bond Data Report Q1 2021
29 Jun 2021
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Author Julio Suarez Director
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AFME is pleased to circulate its Q1 2021 Government Bond Data Report.


Please note, this data report has been updated following last minute updates to the number of PDs in two countries as follows:


  • Net increase in European Primary Dealers: There were 3 exits and 6 entries of banks between January 2021 and June 2021, affecting sovereign debt markets in 8 countries.                                              

This report provides a comprehensive data source with updated statistics on the Government bond primary and secondary markets in Europe (EU27+UK).


Report highlights include:


  • Sovereign debt issuance continues above pre-pandemic levels: Total European (EU+UK) issuance stood at EUR 923.9bn in 1Q21, an increase of 50.3% (QoQ) compared to 4Q20, and an increase of 26.6% (YoY) compared to 1Q20.
  • EU green government bonds outstanding surpassed EUR 94.2bn in 1Q21. EUR 18.6bn of green bonds were issued in 1Q21– the highest quarterly issuance volume in records. Volumes were driven primarily by the inaugural Italian green bond (EUR 8.5 bn), a new French OAT green issue (EUR 7bn) and additional volumes added to the market via tap issuance in the Belgian and Dutch green markets.
  • ESG bond issuance - half of European sovereign issuers set to be active in ESG markets by end-2021. As Italy joins 10 other European government issuers and the European Commission as active participants in European sovereign ESG markets, another 6 sovereigns have indicated they will bring inaugural ESG issuance to the market before the end of 2021.
  • European government bond trading robust in Q1 2021 as volumes represent the second-highest quarterly traded volume since Q1 2017, according to MarketAxess.
  • Credit quality: During 1Q21 there was 1 long-term credit rating upgrade for European countries and 0 downgrades, bringing the full year total to 2 upgrades and 0 downgrades (there has been 1 further upgrade in 2Q21 to date.
  • The average bid-cover ratio (demand/amount allocated) was 2.28 in 1Q21, a decrease of 8.51% (QoQ) from 4Q21 and an increase of 5.7% from 1Q20 (YoY).