Europe’s Answer to US Treasuries Is Headed to €1 Trillion

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Europe’s safest securities looks set to grow beyond €1 trillion ($1.1 trillion) for the first time on record. The European Union has signaled it will issue new notes in the coming days, adding to the €995 billion pile of euro bonds outstanding from the region’s four biggest supranational issuers. The notes represent an attractive alternative to German bonds, offering a small pick-up in yield for a similar level of risk. Speculation is mounting that EU bonds will soon be included in major indexes, adding to their appeal and paving the way for further sales and investment. The growth of supply from the four issuing entities almost doubled over the past decade. The bulk of EU bonds came from sales over the past four years to fund the region’s post-pandemic recovery. The availability of high-rated assets is important given Europe’s past efforts to develop sovereign bond-backed securities never got off the ground. The relatively speedy growth across the bloc’s four major supranationals is helping boost demand among global buyers.

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https://finance.yahoo.com/news/europe-answer-us-treasuries-brink-081052708.html