October Slump May Herald Quiet Year-End in Europe's Bond Market
- New-bond sales tumbled 13% last month amid ECB and Italy risks
- Market may stay slow until January’s traditional issuance rush
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Europe’s primary market may offer slim pickings through the rest of 2018 following the worst October for sales in four years.
October issuance from borrowers including Volkswagen Financial Services AG and Diageo Plc slumped 13 percent to 122.5 billion euros ($139 billion), Bloomberg league table data show, amid risks including Italy’s budget dispute, Brexit, a U.S.-China trade spat and a slowdown in European Central Bank stimulus measures. Sales may also be quiet through year-end as activity typically winds down in the run-up to Christmas.