Analyst: Eurozone total government bond issuance is expected to decline in Q3

Golden Ten Data reported on June 29 that Elmar Voelker, Senior Fixed Income Analyst at LBBW, predicts that the total government bond issuance in the eurozone for the third quarter will decrease by 20% quarter-on-quarter to €323 billion. However, he stated that the net issuance (total issuance minus redemptions) is expected to increase by 5% to just under €110 billion. This issuance forecast is based on the expectation that national debt management agencies will continue to follow the usual seasonal issuance pattern, with bond supply typically slowing during the summer months. He pointed out that over the past four years, the quarter-on-quarter decline in total government bond issuance in the eurozone from the second to the third quarter ranged between 18% and 23%. In addition, the annual completion rate of eurozone bond financing has reached 60%.