From the beginning of the year to April 30, The government bonds of the euro area have already placed a significant part of the sovereign emission volume on the market. Almost 600 billion euros (considering those on expiry over a year), more than more than 45% of the gross volume planned annual (slightly more than done in previous years, for example in the same period 2024 were 560 billion).
Record for emissions of government bonds in Europe
Explains it Florian Spaete, Senior Bond strategist of Generali Investments underlining that in terms of emissions, major progress concerns Greece, Austria and Ireland. For Italy, the progress of emissions is al 47%, slightly higher than the average euro area of 45.2%. In absolute terms, the emissions are at 156mld as of April 30 (VS almost 145mld same period 2024) with forecasts for 2025 at over 330mld (vs 355mld in 2024).
600 billion euros since the beginning of the year
The macroeconomic situation of Italy has stabilized. The strong demand for Italian government bonds also reflected in the issue of retail bonds from 14.9 billion to February 2025. Furthermore, the irregular economic and economic policies of the new US administration have created uncertainty among investors, who now seek more and more liquid alternatives. ConsequentiallyItalian bonds They ruled the attention of foreign investors after the share of foreign investors fell from 41% to 26% between 2010 and 2023 according to European standards.
The expert also explains that since the ECB will further reduce its wallet Of government bonds of approximately 250 billion euros by the end of the year in the context of quantitative tightening, the net balance of emissions remains around 450 billion euros by the end of the year.
The View of Generali Investments
Also, even if i government bonds have not yet changed Their plans, we see risks upon our previous forecasts of 440 billion euros of net emissions of sovereign securities in the euro area for the entire year 2025 (compared to the 470 billion euros of 2024), due to the recent deterioration of economic prospects and a more expansive tax policy in Germany.
The issue of green bonds “is late – for now. The share of green bonds in the total volume of emissions has fallen below 3% during the year, but We foresee an increase in the rest of the year“, The expert concludes.
