Future Treasuries Rival to First Cannibalize Europe’s Debt Sales
- Huge issuance of EU joint paper to create allocation upheaval
- Investors looking to drop French, Belgian debt to make room
Photographer: Michele Tantussi/Getty Images
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After a blockbuster start to the year for euro-area bond sales, a barrage of debt from the European Union risks chipping away at future demand for its member countries.
The bloc is due to launch its first bonds of the year in the next week, after its initial social debt sales in 2020 drew record bidding. It will follow that up in 2021 by making a start on 750 billion euros ($909 billion) in joint issuance to fund the region’s recovery from the pandemic.