Key Facts
• On September 2, European bond issuance reached €49.6 billion, a record high.
• 28 issuers aimed to raise €49.6 billion, surpassing February’s €47.6 billion record.
• UK raised £14 billion from 10-year bonds, with 40% purchased by foreign investors.
• Italy issued €13 billion in 7-year bonds and €5 billion in 30-year bonds.
• Demand for Italian bonds exceeded €218 billion, reflecting strong investor interest.
• France’s corporate bond issuance continued ahead of a cabinet confidence vote.
• Borrowing costs rose from last month’s lows, yet bond issuance remains robust.
• High yields attracted investors despite fiscal concerns in France and the UK.
• Bond fund inflows persisted through summer, boosting demand for new issuances.
Summary
European bond markets set a new record on September 2, with €49.6 billion issued in a single day, surpassing the previous high of €47.6 billion in February. This surge follows the summer lull, marking the start of September’s funding rush. The UK raised £14 billion through 10-year bonds, with 40% of orders from overseas investors, while Italy’s bond issuance attracted over €218 billion in demand. Despite rising borrowing costs, high yields continue to draw investors, even amid fiscal concerns in countries like France and the UK. Persistent inflows into bond funds throughout the summer have further fueled demand for new issuances.
