Eurex announced it’s launched EU-Bond Futures. The EU bond market matured over the last 3 years and, with over €650 billion outstanding volume, the EU is the 5th largest issuer in Europe. The EU now covers a full yield curve, established a liquid secondary market and since 2024 is an active member of Eurex Repo.
Matthias Graulich, member of the Executive Board of Eurex, said in an emailed statement: “The launch of Eurex EU-Bond Futures marks a significant milestone for the European capital markets. We’ve seen overwhelming interest from a broad spectrum of investors, including real money accounts, hedge funds, and the sell-side, all eager to utilize this new instrument. This strong demand underscores the market’s need for efficient tools to manage exposure to EU debt and further strengthens the EU’s position as a prominent issuer.”
While there is a natural trading interest from the primary dealer community and current investors of EU bonds, the EU still has a hybrid character between sovereigns, supranationals and agencies (SSA) and European government bonds. This may twist further interest from SSA desks. Their involvement could reshape market dynamics.