Record Europe Bond Sales Risk Shaking Up Markets
- Net bond sales will surge while support from ECB is waning
- JPMorgan’s liquidity gauge shows market depth near record low
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European bond traders face greater volatility in early 2023 as governments look set to sell record volumes of debt to a market no longer propped up by central bank purchases.
January tends to be a big month of the year for sovereign bond sales in any case, and the impact is going to be exacerbated this time around by a lack of buying by the European Central Bank. Net government supply will climb to a record of nearly €500 billion ($530 billion) in 2023, according to Barclays Plc.