Sovereign Green Bond Market: Drivers of Yields and Liquidity

Research output: Contribution to journalArticle (journal)peer-review


The aim of this study is to analyse and assess the yields and liquidity of sovereign green bonds in selected countries and to compare the yields between sovereign green bonds and conventional bonds. Sovereign green bonds are issued by governments to finance environmental and social projects and represent a relatively new and growing asset class. This study seeks to analyse the financial performance of sovereign green bonds by examining yields and liquidity metrics, such as bid–ask spreads. The findings of this research suggest that the yield to maturity (YTM) of sovereign green bonds is influenced by conventional bond return, while conventional sovereign bonds are affected by the financial market return. Furthermore, the results confirm that the liquidity of sovereign green bonds can be explained by bond maturity.
Original languageEnglish
Article number48
Pages (from-to)1-18
Number of pages18
JournalInternational Journal of Financial Studies
Issue number2
Early online date20 May 2024
Publication statusPublished - 20 May 2024


  • Green bond
  • bond liquidity
  • bond bid yields
  • bond yield to maturity


Dive into the research topics of 'Sovereign Green Bond Market: Drivers of Yields and Liquidity'. Together they form a unique fingerprint.

Cite this