On Monday 31 August, the European Commission carried out a new auction of European Union bonds, that is to say a sale by auction of debt securities to investors on the capital markets. The operation concerns three existing bond lines maturing in 2031, 2036 and 2040.
The results of this first, so-called ‘competitive’, phase of the auction show that the Commission placed an additional €6.27 billion in bonds, against total bids received of nearly €8.2 billion.
The Commission allocated €2.18 billion to the 2031 maturity, €2.30 billion to that of 2036 and €1.79 billion to that of 2040. The average yields obtained came to 3.25%, 3.69% and 4.01% respectively.
A so-called ‘non-competitive’ phase, allowing the acquisition of additional securities on the terms resulting from the first phase, took place on Tuesday 1 September. Final settlement of the operation is scheduled for Wednesday 2 September.
By issuing these bonds, the EU borrows to finance several of its programmes and policies. The auctions are open to members of the ‘EU Primary Dealer Network’, composed of banks and financial institutions approved by the Commission.
See the results: https://aeur.eu/f/n7s (Original version in French by Bernard Denuit)