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

Published on 15 May 2023

The NEU CP and NEU MTN market outstanding amount stood at €340.3 bn in April 2023 (+€53.9 bn over one year). This increase is due to the NEU CP segment (+€58.7 bn year-on-year). Within this segment, financial issuers saw their outstanding rise sharply (+€76.2bn year-on-year), while public and non-financial entities saw their outstanding fall by €15.6 bn and €2.5 bn respectively. Conversely, the outstanding amount of the NEU MTN segment decreased by €4.8 bn year-on-year (-10.7%) and remained stable between March and April 2023.
NEU CP issuances by the financial sector declined in April 2023 but remained at a high level, standing at €107 bn compared to €135.7 bn in March. Issuances by non-financial entities increased in April 2023 to €35.8 bn from €28.7 bn in March 2023; as a consequence, corporate’s outstanding rose to €62bn in April from €56 bn the previous month. Finally, after three consecutive months of increase, public sector issuances fell to €10.79 bn in April 2023, after €19.2 bn in March.
Yields at issuance continued to rise against the backdrop of monetary tightening in the euro zone. For financial issuers, the largest increases over one month were experienced on the 1-day pillar (+30 bps) and the 9-month pillar (+42 bps). With respect to non-financial issuers, there was an increase of 26 bps and 20 bps on the 1-month and 3-month pillars respectively, which account for the bulk of issuances.

Updated on 24 October 2023