Eurozone government bond supply is expected to remain elevated as Spain and France conduct bond auctions ahead of the European Central Bank's (ECB) policy meeting. According to Jin10, Spain plans to issue between €5.25 billion and €6.75 billion in nominal and inflation-linked bonds, with maturities ranging from 2029 to 2035. France is set to auction between €11.5 billion and €13.5 billion in nominal and green bonds, with maturities from 2035 to 2049.
Demand for Eurozone government bonds has been robust this year, particularly in syndicated issuances. Analysts from Citigroup, Arnaud Mares and Giada Giani, noted in a report that recent data confirms the ECB is in an 'ideal state,' suggesting there is no reason to expect changes in its monetary policy or communication stance in the short term.