Sept 29 (Reuters) - The inclusion of the European Union in government bond indexes is the most important step remaining for its debt to be seen on a par with that of its member states, according to an investor survey published on Friday.
The EU is raising up to 800 billion euros ($854.00 billion) in common debt by 2026 to finance a post-COVID recovery fund. It launched the investor survey in June to identify ways to boost the trading and appeal of its bonds.
The inclusion of the bonds in dedicated government bond indexes is seen as strongly important for 75% of those surveyed, the EU said, adding inclusion would "significantly" boost demand for around 48% of respondents.
Reuters reported earlier this year that the EU was preparing to approach index providers for its debt to be included in such indexes.
The use of the EU's bonds as collateral also needs to develop further, the survey said. The introduction of a futures contract -- derivatives which investors use to hedge positions or speculate on price moves -- were seen as an important additional measure.
Some 80% of investors already see the EU's debt as substitutes for the bloc’s highly-rated government bonds, and 54% of investors see it as comparable to the larger issuers among those governments, the survey said.
The survey was based on 128 respondents covering over 60% of the EU's bond volumes. (Reporting by Yoruk Bahceli; editing by Dhara Ranasinghe)