Europe’s Record Debt Sales Pose No Threat to Bond Rally
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Governments will have little trouble selling an estimated record amount of bonds next year if a rally that sent euro-area yields to all-time lows is any gauge.
Citigroup Inc., the third-largest European bond trader according to Greenwich Associates, estimates the 11 biggest borrowers in the region will sell bonds totaling 957 billion euros ($1.19 trillion) next year, 56 billion euros more than the projected sales for 2014. The increase is primarily to cover an unprecedented amount of maturing debt in 2015.