Bond sales across Europe are resuming at the fastest post-summer rate on record, continuing a breakneck borrowing trend. Gross government bond issuance in the eurozone is projected to approach 1.4 trillion euros for 2026, with net supply expected around 930 billion euros. Germany and France sit at the center of the borrowing spree, with neither nation showing signs of fiscal consolidation. Green bond issuance hit an all-time record of 242 billion dollars in the first half of 2026, underscoring Europe’s accelerating commitment to sustainable finance. This surge is driven by three forces: fiscal deficits, the ECB’s quantitative tightening program, and substantial refinancing needs from low-rate era debt maturing at higher yields.
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