Eurozone government bond supply expected to decline in April, potentially dampening appetite for syndication issuances

Golden Ten Data reported on March 31 that Maria Chiara Russo and Luca Salford of Morgan Stanley stated in a report that the eleven largest countries in the Eurozone are expected to issue between 110 billion and 120 billion euros in government bonds in April. The two rate strategists noted that April’s bond supply should be lower than in March and also below April 2025, "primarily reflecting current market conditions, which, if sustained, may suppress syndication activity." They said, "In our view, current market conditions are not conducive to launching new syndicated issuances." Unless conditions improve, the strategists expect supply to remain below that of 2025, due to the absence of new syndicated issuance from France, Italy, and Austria, while Portugal may still enter the market.