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The euro zone bond issuance is expected next year for five years minimum debt crisis or come to an end

By Denise Foster,2015-06-05 05:06
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The euro zone bond issuance is expected next year for five years minimum debt crisis or come to an end

    The euro zone bond issuance is expected next year for

    five years minimum debt crisis or come to an end

    U.S. stock market center: the stock industry to provide exclusive plate, plate after front coil, ETF, warrants market in real time

On May 22, 2015, Athens, Greece to get photos of the euro.

    Sina stocks - Beijing time 21, according to Reuters the eurozone government bond sales will be fell below the 900 billion euros, or next year for the first time since 2011, after crisis-hit Spain and Italy with the help of the low cost of borrowing, gradually resolve the debt problems. 2012 crisis in recent years, Spain and Italy to raise emergency financing

    to carry on the extension, is now through borrowing costs down the right place, right time to extend the average maturity of the bonds so that the euro-zone debt crisis is close to final chapter.

    "The real debt increased over the past few years is directly related to the debt crisis, now this kind of phenomenon will become the past tense,"Royal bank of Scotland(8.78, 0.10, 1.15%) rate analyst Michael Michaelides said.

    Royal bank of Scotland,Morgan Stanley(31.68, 0.39, 1.25%) and commerzbank forecasts show that Italy and Spain's Treasury total issuance will reduce about 20 billion euros each, respectively, to around 220 billion euros and 120 billion euros.

    The eurozone's biggest economy, Germany plans to increase borrowing in 2016, to cope with the war from the Middle East area immigration related costs, but these mainly from the money market fund raising, the bond issuance of increase is not much.

    Overall, the euro zone countries bond issuance is expected between 860 billion and 880 billion euros, as in 2011.In the European Union has urged its members to drive down the sheet, to reduce the deficit situation, unless the global economy slumped, otherwise the government continues to borrow the possibility of a debt problem occurs again is not high.

    The Italian Treasury is expected later this year announced the official

    issuance plan, Spain's Treasury will be released in early 2016 issuance plan.

    Because of concerns that the two countries may enter rescue, their borrowing costs soared in 2012, means that investors will only provide short-term financing.Italy and Spain is the euro zone's third and fourth largest economies respectively.

    This has brought the debt pressure, in the next few years need for these debt refinancing, even as the European central bank

    before[microblogging]President Mario draghi promised to do their best to save the euro, the crisis has waned.

    Issuance decline next year, because most emergency financing now has been extended for longer-term bonds.In 2016, Italian and Spanish bond redemptions is expected to decline in 18 billion euros.

    But strategists said, it also reflects the balance conditions in these countries, the European central bank's ultra-loose monetary policy to drive down the borrowing costs of all the member countries, reducing the annual interest expense.

    IT10YT = in Italy and Spain zone TWEB10 10-year Treasury yields decreased from more than 7% in 2012, earlier this year hit a record low of 1%.

    This year the two countries with negative yields issuing short-term Treasury bills, this means that investors are actually paid to the two

governments provide loans.

    "Extend the debt cost has been reduced, so the whole circulation," Morgan Stanley strategist Jesper Rooth said.

    To adjust the debt portfolio

    Interest rates at record lows, also let the euro-zone countries to borrow more, readjust the debt portfolio to prevent sinking quantity in the years to come.

    Next year, said Germany will sell 9 billion euros 30-year bonds, above 6 billion euros, issued in 2015.Commerzbank forecasts, Italy and Spain in the first half of next year will have both issued new 30-year bonds, is expected to raise about 8 billion euros.

    Italian Treasury data show that the average age of Italian bonds this year is expected to increase, this is the first time since 2010.In the third quarter, according to data from the fixed number of year for almost 6.5 years on average, more than 2014 6.4 years, 7.2 years in 2010. Last year the average duration of up to 6.28 years in Spain, is expected to be further improved.In 2007 hit pre-crisis high of 6.8 years.

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