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Sovereigns

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Fear the vol, not the volume, in 2026


◆ Pulay highlights 29% rise in investor numbers ◆ UK accounts dominate ◆ Communications strategy seen as key
SSA
Pan-European stock exchange shares what was behind its recent decision to launch a defence bond label, how it may help both issuers and investors, and what lies ahead
◆ Gilts yields choppy amid PM leadership rumours ◆ Crossover of accounts drawn to linker trade ◆ 'Super strong trade' says lead manager
The trade was a little smaller than last year's debut, but has another social label
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  • SRI
    Although the biggest issuers of all — the US, Japan and China — remain outside the market for now, sovereign ESG debt has gained real momentum in the past 18 months, as a growing number of developed and emerging market issuers have endorsed green, social and sustainable bonds as part of their financing options. As a result, investors are seizing new opportunities to engage on national pandemic recovery and net zero strategies and targets.
  • Bonds issued by the Chinese government and policy lenders saw a strong rally on Thursday after the State Council signalled a cut in banks’ reserve requirement ratio (RRR), a move that could unleash hundreds of billions in renminbi liquidity into the market.
  • France stuck to its approach of engaging with investors during bookbuilding to persuade them not to inflate orders for its second syndication in a row this week, when the sovereign brought a new 30 year OAT to the market.
  • The European Central Bank announced the results of its strategic policy review on Thursday, some two months ahead of schedule. The changes to its monetary policy were reminiscent of a watered down version of those implemented by the US Federal Open Markets Committee earlier this year.
  • Rating: Aa2/AA/AA
  • Agence France Trésor, the French sovereign debt office, has appointed a new chief executive to replace Anthony Requin, who has stepped down after six years in the role.