Commerzbank: Eurozone Government Bond Supply Expected to Reach Record High in 2027

(1) Hauke Siemssen and Erik Liem of Commerzbank stated in a report that the supply of Eurozone government bonds is expected to reach 1.583 trillion euros in 2027, setting a record high. (2) The two rate strategists said that this issuance volume is mainly driven by higher maturity repayments; maturities will reach around 967 billion euros, an increase of 65 billion euros compared to 2026. (3) They said that with high defense spending plans, support measures, and a lack of welfare reforms, fiscal consolidation will still take a back seat in most European countries in 2027. (4) They added that as bond maturities increase significantly, refinancing needs are also on the rise.