Eurozone Sovereigns’ Net Cash Requirement in 2024 Seen at Record Level

0713 GMT – Citi Research forecasts the net cash requirement of the eurozone’s largest 11 sovereign issuers at a record level of EUR542 billion in 2024, up 21% from EUR447 billion in 2023, its rates strategists say in a note. This forecast is based on Citi Research’s central scenario that the European Central Bank will discontinue reinvestments under the Pandemic Emergency Purchase Programme from April 2024. The forecast net cash requirement for 2024 is a record since the formation of the eurozone, the strategists say. ([email protected])

Gross Government Bond Issuance in Eurozone in 2024 Seen in Line With 2023

0706 GMT – Gross government bond issuance in the eurozone in 2024 is expected to be largely unchanged from 2023, rates strategists at Citi Research say in a note. They forecast gross bond supply of EUR1.223 trillion next year versus EUR1.236 trillion this year. “The persistently high gross supply is driven by an increase in redemptions, even as overall budget deficit is targeted to decline to 3.2% in draft budgetary plans from 3.5% this year,” the strategists say. Citi’s own economists forecast a 3.3% deficit “but risks to both these estimates are perhaps tilted upwards given slowing growth, European Parliament elections in 2024 and relatively calm absorption of similar eurozone government bond supply,” they say. ([email protected])