EUROPE - The European Union (EU) and other debt issuers need  to agree to make the European bond market easier to trade, argues fixed income manager Pimco.

There is a general lack of coordination, and "the public sector has been slow to make progress in the way it brings its debt to the market", says Matthieu Louanges, head of the European government team at bond specialist Pimco.

With the arrival of large international investors, accelerating their diversification out of US Treasuries, and the euro becoming a growing reserve currency, action is needed, argues Louanges.

He added: "The Euroland government bond market needs more unification, more harmonisation, more standardisation... and quickly."

According to Louanges, the sector underperforms during periods of concentrated issuance, while 30-year European bonds tend to do well.

The sector would therefore benefit from a calendar, ensuring better distribution of issuance along the year, suggests Pimco.

Issuance techniques, which vary widely at the moment, should also be streamlined, as national interests "represent a barrier to market integration", added Louanges.