Government Bond Data Report Q4 2025 & 2025 Full Year

Report highlights include:

 

1. EU Member States and the UK issued EUR 877 bn in bonds and bills throughout 4Q25, which represents a decrease of 7.2% (QoQ) compared to 3Q25, and an increase of 3.7% (YoY) compared to 4Q24.  

 

1. In 2025FY, European government bond trading increased 6% compared to 2024 and 16% compared to 2023, according to MarketAxess TraX. The traded amount in 2025FY was the highest average daily trading volume in European government bonds since records began in 2014, with trading activity in all quarters of 2025 meeting or exceeding historical peaks. During 4Q25, European quarterly traded volumes in increased 1% (QoQ) and increased 6% (YoY), representing the highest fourth-quarter average daily traded volume on record.

 

1. Outstanding amount of European ESG government bonds reached EUR 612.4 bn during 4Q25. Volumes were driven by inaugural social sovereign bond issuance by Czechia (EUR 0.6 bn) and new green references issued by Austria (EUR 1.7bn) and Slovenia (EUR 0.2 bn). Green volumes were further supported by tap issuance by France (EUR 4.8 bn), the UK (EUR 4.2 bn), Germany (EUR 2.5 bn), Italy (EUR 1.6 bn), Spain (EUR 1.0 bn), Belgium (EUR 0.6 bn), Hungary (0.1 bn) and the European Commission (EUR 2.1bn). 

 

1. During 4Q25 there were 4 long-term credit rating upgrades for European countries and 1 downgrade. This follows 2 upgrades and no downgrades in 1Q25, 3 upgrades and 2 downgrades in 2Q25, 8 upgrades and 2 downgrades in 3Q25, bringing the 2025 full-year total to 17 upgrades and 5 downgrades. Most recently in February 2026, Slovenia was upgraded by one notch to A2 by one of the main credit rating agencies.

 

1. There were 3 entries and no exits in European primary dealerships from December 2025 to January 2026 with a net change of 3. Changes in primary dealership affected sovereign debt markets in Austria, the Netherlands and Slovakia. This follows 4 entries and 2 exits of banks in total to primary dealer systems in Germany, Italy, Ireland, Portugal and Romania during 2025FY. After the most recent changes there are now 17 primary dealers in the Dutch sovereign market, representing the highest number of active participants since January 2016. 

 

1. The average bid-cover ratio (demand/amount allocated) was 2.26 in 4Q25, a decrease of 7.4% (QoQ) from 3Q25 and a decrease of 4.6% from 4Q24 (YoY).