The improvement of peripheral bonds’ fundamentals has accelerated

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.

Click to read the complete white paper on the site