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Morgan Stanley See Smaller Than Average EGB Extension

MONTH-END EXTENSIONS

For the broad euro government bond index Morgan Stanley expect “an extension of 0.059y, compared to an average July (0.117y) and an average monthly extension (0.079y). A total of about €86 billion of issuance will affect the extension and about €63 billion worth of market value of bonds will fall out of the index. By sector, we see the largest extension in the 1-5y sector and, country-wise, we expect the Netherlands to extend the most, followed by Austria and Spain.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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