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Bloomberg
Euro-area governments are ramping up their bond sales, but there are few signs of investor fatigue with the European Central Bank (ECB) increasing its purchases.
Yields from Germany to Italy climbed after debt management offices sold more than 40 billion euros ($43 billion) of bonds, the most in seven years, according to Commerzbank AG. However, investors have stepped up to meet this avalanche of supply, with Germany and Italy set to issue debt in the
coming days.
The ECB is likely to have broken last week’s debt-buying record following its first full week of the Pandemic Emergency Purchase Plan, and euro-area nations made the most of it. Alongside scheduled debt sales from Germany, France, Spain and Italy, Belgium and Portugal also joined the selling frenzy.
Bond sales next week are set to slow with offerings from Germany, Italy, and Austria to total just under 18 billion euros, according to Commerzbank. But there may be further opportunistic selling after Ireland signaled its intention for a syndicated sale this month. The UK will sell more than nine billion pounds ($11 billion) across four sales as it seeks to reach its 45-billion pound target for the month.