We see the inflation outlook as negative for US Treasuries but potentially helping
eurozone government bonds.
Not exact matches
As the fiscal disasters in Greece and Ireland unfolded, and
bond yields began drifting perilously upward, making it tougher to finance
government borrowing, the
eurozone rushed to calm nervous lenders.
Treasury yields retreat on Thursday by falling rates in European
government bonds after
eurozone inflation data came in weaker than expected.
It also appears that the ECB will concentrate on reducing its purchases of
government (rather than corporate)
bonds, but here issuance is increasing, with the net amount of
eurozone government debt set to expand in 2018, in contrast to the contraction seen over the previous 18 months.
It was almost exactly a year ago that the E.C.B. set
eurozone precedent by buying
government bonds and other assets.
FRANKFURT — The European Central Bank said on Thursday that it would begin buying hundreds of billions of euros worth of
government bonds in an aggressive — though some say belated — attempt to prevent the
eurozone from becoming trapped in long - term economic stagnation.
Treasury yields fall after tepid
eurozone inflation data spark German bund rally European
government bonds strengthened as inflation weakensTreasury yields retreat on Thursday by falling rates in European
government bonds after
eurozone inflation data came in weaker than expected.
Government bond yields are negative across much of Northern Europe, amid fears of deflation and stresses in the
eurozone.
In reaction to the polls, the spread on French five - year
government bonds rose to its highest level since the
eurozone debt crisis.
The
eurozone does not have a single Pan-European
government bond similar to United States Treasuries.
-LRB-...) The strength of demand for
eurozone «periphery» debt reflected increased investor appetite for higher - yielding
government bonds as well as rising confidence in the creditworthiness of
eurozone economies.
Growth in most of the
eurozone has remained tepid and reliant on continued central bank stimulus, though the European Central Bank's (ECB's)
bond - purchasing program has been hampered by a scarcity of eligible
bonds, as issuance from member
governments is restricted by their austerity - driven policies.
Assets eligible for purchase in the ECB's $ 1 trillion program are
government, agency and supernational
bonds that are domiciled in the
eurozone.
A key sign: Prices for
government bonds of other heavily indebted
eurozone countries — such as Spain and Italy — are not suffering in sync with Greek
bonds, as they did before.
Though the ECB has acknowledged that one of the main factors underlying the
eurozone's stagnation is a lack of credit growth, any potential use of QE seems unlikely to make much of an impact in this regard, even if an announcement of QE could drive yields down further, making it even less attractive for banks to hold
government bonds.
The
bond purchases were started March 2015 to help the
eurozone bounce back from troubles over
government and bank debt in several member countries including Greece, Ireland, Portugal, Cyprus, Spain and Italy.
We see opportunities in
eurozone peripheral
government bonds.
The S&P China
Government Bond Index is calculated in CNY and the S&P
Eurozone Developed Sovereign
Bond Index is calculated in EUR, while the other two indices are calculated in USD.
Some of the outperformers are the S&P
Eurozone Developed Sovereign
Bond Index (up 11.98 %), the S&P U.S. Issued Investment Grade Corporate
Bond Index (up 7.71 %) and the S&P China
Government Bond Index (up 10.35 %).
As shown in Exhibit 3, the growth of dividend ETPs» assets since year - end 2009 coincided with a period of low and declining 10 - year
government bond yields in the U.S.,
eurozone, and Japan.