Spain set a new record in the sovereign bond market, attracting an unprecedented €138 billion in bids for a €15 billion offering of 10-year debt.
This record demand is part of a series of strong eurozone debt sales that began in 2024.
Following suit, Belgium and Italy also saw high demand, with Belgium receiving €75 billion for its 10-year bond and Italy €91 billion for its 30-year debt.
Investor interest remains high despite lower yields in late 2023, spurred by expectations of interest rate cuts by the European Central Bank. This optimism is bolstered by Spain’s economic performance, with a projected 2.4% growth in 2023. Consequently, Spain plans to issue about €10 billion less in net debt in 2024 than in the previous year.
The sale’s success was partly due to the new bonds’ attractive yield of 3.26%, slightly higher than the existing yield.
This surge in demand reflects strong investor confidence in eurozone sovereign debt, indicating a thriving bond market as the region’s largest economies plan significant issuances in the year ahead.
© 2024 funds europe
