Eurozone citizens began funding in January
January 5 (Reuters) – Italy and Slovenia on Wednesday began the January issue period for eurozone governments with the sale of syndicated debt.
Italy has issued a new 30-year bond, priced later Wednesday, just weeks before a meeting of parliament to elect a new president on January 24th. read more
Slovenia has issued new four- and 40-year bonds, according to notes by two top managers seen by Reuters.
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Everything will be sold through a union, where the borrower hires banks to sell the debt directly to end investors, allowing him to increase in size and target a larger investor base.
January is usually a busy period for government unions, as debt management offices want to continue with their financing plans.
In addition to selling syndicated debt, Germany will sell a new 10-year bond at auction, targeting 4 billion euros.
Spain will raise up to € 5.75 billion from bonds maturing in 2024, 2028 and 2037 and in an inflation-linked bond maturing in 2027.
Eurozone bond yields were close to recent highs on Wednesday, with most 10-year benchmark yields a day remaining one basis point higher.
The German 10-year yield was unchanged after rising to a new two-month high of -0.114% in previous trading. .
Italy’s 10-year yield also rose to a new two-month high of 1.23%.
Its 30-year yield reached its highest level since May at 2.087% after a steep rise on Tuesday when the sale of its bonds was first announced.
The general increase in bond yields since the beginning of this year, led by the US, where 10-year yields have risen by 13 basis points, has been attributed to investors preparing to raise US Federal Reserve interest rates.
But ING analysts have found that yields are also rising in Europe as the issue is expected to pick up, as do pandemic emergency purchases of European Central Bank bonds ending in March.
Given the decline in UBS bond purchases after adjusting for ECB purchases, it expects a net offer of € 112 billion from the eurozone’s 10 largest issuers this year, compared to minus € 203 billion in 2021, the largest year-on-year increase since the ECB launched in 2015. quantitative release.
Yields in the euro area are also rising as “markets seek solace in the unwillingness of European governments to impose new restrictions on their economies,” say ING analysts.
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Reporting Yoruk Bahceli; Editing Kim Coghill
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