AFME Government Bond Data Report Q3 2023 | AFME

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Data Research
AFME Government Bond Data Report Q3 2023
18 Dec 2023
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Author Julio Suarez Director
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Report highlights include:


  • EU Member States and the UK issued EUR 850 bn in bonds and bills throughout 3Q23, which represents a decrease of 4% (QoQ) compared to 2Q23, and an increase of 21% (YoY) compared to 3Q22. In the Netherlands, issuance in 2023 year-to-date represents the highest Q1-Q3 issued volume since 2013. In Austria, 2023 year-to-date issuance represents the highest Q1-Q3 volume issued in any year on record.
  • Record trading volumes continued in European (EU+UK) government bonds during Q3 2023, according to MarketAxess TraX, with trading increasing 18% (YoY) and decreasing 5% (QoQ). The top 3 quarters for highest average daily trading volumes (since 2014) all took place in 2023 year-to-date. In Italy, trading volumes increased 42% YoY and 3% QoQ during 3Q23 after the highest monthly turnover volume on record was traded in September 2023.
  • Outstanding amount of European ESG government bonds reached EUR 411 bn during 3Q23. Volumes were driven by tap issuance by the UK (EUR 3.1 bn), Germany (EUR 1.5 bn) and France (EUR 1.0 bn) in their respective green programmes and an additional EUR 1.5 bn of green bills issued in Austria.  The pace of growth in the outstanding volume of ESG sovereign bonds slowed to 1% during 3Q23, falling from 11% growth in 2Q23.
  • During 3Q23 there were 3 long-term credit rating upgrades for European countries and 1 downgrade. This follows 2 upgrades and 1 downgrade in both 1Q23 and 2Q23, bringing the 2023 year-to-date total to 9 upgrades and 3 downgrades (there were 2 further upgrade and no downgrade in 3Q23 to date). In Greece, the recent upgrade has increased the credit rating of the country to investment grade, representing the first time since 2010 Greece has achieved this category of credit profile by one of the main credit rating agencies.
  • The average bid-cover ratio (demand/amount allocated) was 2.12 in 3Q23, a decrease from 2.18 in 2Q23 and a decrease from 2.30 in 3Q22.