Government Bond Data Report Q4 2019 | AFME

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Data Research
Government Bond Data Report Q4 2019
20 Mar 2020
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Author Julio Suarez Director
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This report provides a comprehensive data source with updated statistics on the Government bond primary and secondary markets in Europe (EU27 and the United Kingdom).

Report highlights include:

  • The highest average annual traded volume since 2015 was observed during the year of 2019, according to MarketAxess
  • The average bid-cover ratio (demand/amount allocated) was 2.13 in 4Q19, a slight decrease of -0.49% (YoY) from 4Q18 and a -0.73% decrease QoQ from 3Q19.
  • During 4Q19 there were 4 long-term credit rating upgrades for EU countries (following 3 in 3Q19, 2 in 2Q19 and 5 in 1Q19) and no downgrades, bringing the year to date total to 14 upgrades and no downgrades. There have been 4 further upgrades in 2020 to date.
  • Outstanding amount of EU green sovereign bonds surpasses EUR 40bn, after the Irish green bond was re-opened for an additional EUR 2bn of volume in a tap issuance.
  • There has been continuous improvement in EU credit quality. Particularly of Central and Eastern European countries, where Latvia and Lithuania have been assigned the highest credit rating in both countries’ history.
  • There has been a recent repricing of sovereign bond markets due to the Covid-19 pandemic. Eurozone 1Y market-implied inflation expectations fall to 5-year low, Eurozone (AAA) 10Y spot yield fall to lowest value on record and Italian 5Y credit default swaps reach 5-month high.