Fixed Income Special Report:External holdings of Eurozone government debt

德意志银行 Abhishek Singhania


　　The recent loss of confidence of foreign investors in the sovereign debtof Eurozone countries has led to renewed focus on the amount ofEurozone government debt held externally

　　The holdings of external investors could provide an indication of themagnitude of further selling that we could see if the loss in confidence inthe euro project is not addressed

　　From Mar-10 to Jun-11 external holdings of government debt of even themost troubled Eurozone countries has declined only marginally while ithas in fact increased for the larger peripheral countries (Italy and Spain)

　　The long-term development in the external holding of Eurozonegovernment debt is even more cause for concern. Since the introductionof the euro the increase in external holdings has exceeded the increasein government debt of Eurozone countries

　　On a consolidated basis, i.e. netting out intra Eurozone government debtholdings, the increase in external government debt since Dec-05 hasbeen EUR 1.2trillion out of a total increase in government debt of EUR2.4 trillion