AFME is pleased to circulate its Q3 2019 Government Bond Data Report.                                                

This report provides a comprehensive data source with updated statistics on the Government bond primary and secondary markets in Europe (EU28).  

Report highlights include:

• The highest third quarter traded volume since 2014 was observed during 3Q19, according to Trax data
• The average bid-cover ratio (demand/amount allocated) was 2.14 in 3Q19, a slight increase of 0.81% (YoY) from 3Q18 and a -8.06% decrease QoQ from the multi-year high recorded in 2Q19.
• During 3Q19 there were 3 long-term credit rating upgrades for EU countries (following 2 in 2Q19 and 5 in 1Q19) and no downgrades, bringing the year to date total to 14 upgrades and no downgrades (there were 4 further upgrades in 4Q19 to date).
• Following 5 Primary Dealers leaving the market in 2019 to date, the average number of EU Primary Dealers is equal to the lowest number on record, we look at country specific trends in more detail.
• EU weighted average coupon rates of outstanding sovereign debt falls by 61bp since early 2016. The 13bp fall in EU weighted average coupon rates in the first three quarters of 2019 is already greater than the annual drop of 8bp observed during 2018.
• Outstanding amount of EU green government bonds reaches EUR 39 bn. Q3 2019 marks the first time green market activity took place in a third quarter of the year.