Asian firms boosted euro bond sales to $100.7B in 2025, driven by U.S. tariff fears and a push to reduce dollar reliance.

Asian borrowers surged euro-denominated bond issuance in 2025, reaching $100.7 billion—up 75% from 2024 and accounting for a record 23% of regional debt sales. Driven by concerns over U.S. tariffs, Federal Reserve pressure, and a weakening dollar, issuers are diversifying away from dollar dependence. Lower funding costs, strong investor demand—including oversubscribed deals by China and NTT Inc.—and a near five-year low in euro-dollar swap premiums fueled the shift. While the dollar remains dominant, its share declined, signaling a broader move toward a multipolar financial system. Experts project euro issuance could reach $125 billion in 2026, reflecting sustained momentum in global capital market rebalancing.