Print Magazine
Brussels Morning Newspaper
Monday, June 27, 2022
No Result
View All Result
  • Home
    • About Us
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Europe With Transparency
    • Sustainable Perspective
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
Brussels Morning Newspaper
  • Home
    • About Us
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Europe With Transparency
    • Sustainable Perspective
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
Brussels Morning Newspaper
No Result
View All Result
Home EU Institutions

Demand for EU recovery fund bonds high, yields dip

Nikola Kiš by Nikola Kiš
16 June 2021
in EU Institutions
Demand for EU recovery fund bonds high, yields dip

Some euro banknotes and coins with a calculator and an inscription,eurobond,with a face mask. European bank concept

Share on FacebookShare on Twitter

Brussels (Brussels Morning) The EU sold 20 billion euro worth of 10-year bonds on Tuesday to back its COVID-19 recovery fund, with the yield on the bonds dipping on Wednesday.

Demand for the bonds reached roughly 142 billion euro, with yield dropping from 0.086% at pricing to 0.035% on Wednesday, according to Reuters.

Tuesday’s bond sale was the largest single-tranche, institutional borrowing and marks the start of the EU’s borrowing spree. The bloc is to issue up to 800 billion euro worth of bonds until the end of 2026 to finance its COVID-19 recovery fund.

Wednesday’s yield dip combined with the strong demand indicates that the market easily absorbed the tranche.

Demand exceeded expectations

“Even we are a little surprised that it’s managed to perform that well that quickly, given the size” of the tranche, one banker involved in the sale noted.

Clearly, the banker pointed out, the recent drop of yield on EU debt had appealed to investors. As a result, the funding programme would likely become significantly more solvent compared to the Support to mitigate Unemployment Risks in an Emergency (SURE), the banker added.

The European Central Bank (ECB) has decided to maintain accelerated bond purchases and low interest rates through the third quarter this year, which gave investors more confidence to buy the bonds.

Bond yields have dropped on both sides of the Atlantic in recent weeks and the Fed is expected to set a date for the start of talks on easing bond purchases, with investors looking at new economic projections and interest rates to see how the views of policymakers have changed since the first quarter this year.

According to the AllianceBernstein asset management firm’s portfolio manager, Nick Sanders, US yields would probably be “the main driver” in indicating the “direction of European yields over the coming three months”. For this reason, he suggested, “the Fed rhetoric on tapering and where their inflation targets are will be of interest”.

Latest post

Mont,De,Marsan,Landes,France,05,17,2019,Eurofighter,Typhoon

German MTU hopes for new contracts in Luftwaffe overhaul

1 day ago
Flags,Of,Moldova,European,Union,And,Ukraine

Supporting Moldova means supporting stability in Ukraine

2 days ago

Most Read

  • These are the 10 highest paying jobs in the Europe in 2022

    These are the 10 highest paying jobs in the Europe in 2022

    0 shares
    Share 0 Tweet 0
  • What Are The Highest Paying Jobs In Luxembourg?

    0 shares
    Share 0 Tweet 0
  • Energy Recovery Fund

    0 shares
    Share 0 Tweet 0
  • What Are The Highest Paying Jobs In Finland?

    0 shares
    Share 0 Tweet 0
  • A taste of Croatian flavors of the diplomacy in Brussels

    0 shares
    Share 0 Tweet 0
Facebook Twitter Youtube LinkedIn

About Us

Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.

Category

  • Ambassador’s Corner
  • Belgium News
  • Brussels
  • Commission
  • Council
  • Culture and Society
  • Diplomacy
  • Economy
  • EU Institutions
  • Europe
  • Europe With Transparency
  • Features
  • In Depth
  • Member States
  • Middle East Eye
  • Opinion
  • Our pick
  • Parliament
  • Place de la Bourse
  • Southeast Europe
  • Sustainable Perspective
  • The American Angle
  • The Macro-Economist
  • Uncategorised
  • US Elections
  • World

More info

  • About Us
  • Advertising
  • Cookies Policy
  • Contact Us
  • FAQ
  • Jobs

Brussels Morning Newspaper - All Rights Reserved © 2020

No Result
View All Result
  • Home
  • About Us
  • EU Institutions
    • Parliament
    • Commission
    • Council
  • Europe
  • World
  • Member States
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • Europe With Transparency
    • Place de la Bourse
    • The Macro-Economist
    • Sustainable Perspective
    • The American Angle
    • Southeast Europe
  • Print Magazine

Brussels Morning Newspaper - All Rights Reserved © 2020

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT