Cross road: the landscape of the fixed-income market
Monday 14 May 2018
Research / Market
Two events pushed down Eurozone sovereign spreads in 2017: the French presidential election in April & May, which dissipated investors’ fears about Eurosceptic movements, and the announcement on 26 October of a smaller-than-expected reduction in ECB’s QE for 2018 (monthly purchases lowered from € 60 bn to €30bn).
However, it is important to point out that the fundamentals of European sovereign bonds have improved recently and provide strong support for this segment of the market.