AFME is pleased to circulate its Q2 2020 Government Bond Data Report.

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:

• Record breaking EUR 1,351 bn of European (EU+UK) bonds and bills issued during Q2 2020, the largest issuance volume of any quarter to date, as countries expand primary market issuance to finance fiscal responses to the impact of Covid-19.

• The average bid-cover ratio (demand/amount allocated) stood at 2.28 in 2Q20, an increase of 5.4% (QoQ) from 1Q20 and a decrease of 1.5% from 2Q19 (YoY), suggesting sufficient investor appetite and Central Bank support for the increased volume of bonds and bills.

• Outstanding amount of EU green government bonds surpasses EUR 50bn, after the Dutch, Polish, Belgian and Lithuanian green bonds were reopened, increasing the amount outstanding to EUR 50.6bn.

• During 2Q20 there were 2 downgrades and 0 long-term credit rating upgrades for European countries (following 4 upgrades and 1 downgrade during Q1 2020), bringing the year to date total to 5 upgrades and 3 downgrades. There has been 1 further upgrade in 2020 to date. All downgrades in 2020 YtD have been linked to the impact of the Covid-19 crisis.

• During Q2 2020, quarterly traded volume was equal to volume observed in Q2 2017 and Q2 2019, according to TRAX

• CDS spreads normalise in Italy, Portugal and Spain after peaking in March 2020.