Developments in the EU bond market

Volatility caused by the Covid-19 pandemic served as a practical stress test for European capital markets, prompting renewed calls for the issuance of euro bonds as part of a Europe-wide package of economic support measures to help those affected. 

With the programme now under way, Jutta Frey-Hartenberger and Lee Bartholomew of the Eurex fixed income product development team discuss the take-up and demand for support to mitigate unemployment risks in an emergency (Sure) bonds and Next Generation European Union (NGEU) bonds among the investor community and the factors affecting rollout of associated products.

00:30 – Why Covid-19 volatility has reduced resistance to euro bonds

03:36 – Success factors of Sure bonds and integration with the bond market

05:00 – Benefits for the EU’s credit position

07:30 – How a futures product will support liquidity for NGEU bonds

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