Biggest month of bond supply to test markets as rate cut bets fade

LONDON, May 30 (Reuters) – Global bond markets face the biggest amount of net sovereign issuance so far this year in June, just as economic data throws rate cuts into doubt, testing investors’ so-far strong appetite for the debt.

Net government bond supply is likely to rise to $340 billion for the United States, euro zone countries and Britain, according to data from lender BNP Paribas, as redemptions fall and central banks continue to slash their holdings of the paper.