AFME is pleased to circulate its Q1 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:

• The highest quarterly traded volume since Q1 2017 was observed during Q1 2020, according to TRAX

• The average bid-cover ratio (demand/amount allocated) was 2.16 in 1Q20, an increase of 2.2% (QoQ) from 4Q19 and equal to 1Q19 (YoY).

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

• Record breaking tap issuance raises outstanding amount of European sovereign green bonds to EUR 46.8 bn, after both the French and Dutch green bonds were re-opened, adding an additional volume of EUR 4.6 bn and EUR 1.4 bn respectively.

• There has been a  sustained repricing of sovereign bond markets amid high volatility due to the Coronavirus pandemic. After a volatile Q1, Eurozone 10Y spot yields rebounded from record multi-year lows, Italian 5Y CDS show moderate improvement while Eurozone 1Y market-implied inflation expectations continued to fall