In the first nine months of 2025, gross issues of sovereign bonds in the Euro Area with a maturity of more than one year reached approximately 1167 billion euros, slightly exceeding the values of the same period last year (1123 billion), and stood at approximately 87% compared to the annual gross issuance target, a figure higher than the 82% of 2024. This was underlined by Florian Spaete, Senior Bond Strategist at Generali Investments explaining that net issues were 513 billion euros, more than last year (446 billion).
Green sovereign bonds
We expect there will be no net issuance in the fourth quarter as maturities of around €178 billion balance with new issuance of around €173 billion. The emissions situation appears very stable and there should be no major surprises in the remaining part of the year. “Net-net” emissions (which also include the ECB’s Quantitative Tightening) will still remain positive in the fourth quarter. We expect the ECB not to reinvest more than €100 billion in the quarter.
The view of Generali Investments
Looking at individual countries, France still has around 25 billion euros of bonds to issue, compared to more than 45 billion in bonds maturing in Q4, a situation which comes in a context of political and economic tensions. Italy, on the other hand, has already completed around 90% of its planned annual emission (same period last year it was at 80%).
Italy in the lead in the Eura area
Interestingly, Euro Area Treasuries have reacted to the steeper yield curve and lower demand for long-dated bonds by reducing the share of bonds beyond 10 years from 42% at the beginning of the year to 31% in Q3, with a current annual average of 37% compared to 43% in 2024.
Issuances of green sovereign bonds in the Euro Area stopped at 44 billion euros in the period considered, down compared to 52 billion in the first nine months of last year. Italy in the lead for green emissions a 13.28 billion followed by Germany with 13 billion (as of September 30, 2025).
