Monthly review for commercial paper and medium-term note market - March 2023

Published on 17th of April 2023

The total outstanding amount of the NEU CP and NEU MTN market stood at €328.8 bn in March 2023 (+€52.5 bn year-on-year). This increase was due to the NEU CP segment (+€58 bn year-on-year) and driven by financial issuers (+€75 bn year-on-year) while public and non-financial entities saw their outstandings drop by €12.4 bn and €6 bn respectively. On the other hand, the outstanding amount of the NEU MTN segment decreased by €5.5 bn over one year (-12.3%) and remained stable between February and March 2023.
NEU CP issuances by the financial sector increased in March 2023 to €135.7 bn from €117.2 bn the previous month. This is in line with an upward trend observed for several months, with an annual change of 104.7%. Issuance by non-financial entities increased in March 2023 to €28.7 bn from €25.9 bn in February 2023. Finally, confirming a trend observed since the beginning of 2023, issuance by public entities rose in March 2023 to €19.2 bn, compared to €11.4 bn in February 2023.
Yields at issuance continued to rise in the context of monetary policy tightening in the Eurozone. For financial issuers, the largest increases were observed on the 1-month pillar (+36 bps) and the 1-day pillar (+32 bps). For non-financial issuers, there was an increase of 36 bps and 22 bps respectively on the 1-month and 3-month pillars, which account for the bulk of issuances.

Updated on the 25th of July 2024