Debt Market Update October 2026
Debt Market Update October 2026
Since the September policy meetings, higher energy prices have lifted euro area inflation to 3.8%, and both the ECB and the Federal Reserve have raised rates by 25 bps. Euro government bond yields have increased, with French and Italian CDS spreads more than doubling since mid-September, while corporate borrowing costs (5Y swap rate plus CDS) have moved from 293 bps in January to 379 bps. In Q3 2026, EU and Swiss bond volumes fell 56% compared with Q2 and bond volumes fell 21%, Sustainable bond issuance declined from EUR 25.2b to EUR 14.9b.
Curious how these shifts could influence your (re)financing strategy?
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