European bond markets show signs of stability

clock

Despite the recent downgrades by Standard & Poor's and Fitch, Royal London Asset Management reports that a relative stability has settled over European government bond markets as risk assets rally.

George Henderson, Manager of the Group’s Global Index Linked Fund, confirms that spreads on Italian 10 year bonds (over German bunds) have tightened 80 basis points and are now trading at 410bps over. The current absolute 10 year yield has breached the psychologically important 6% level to the downside. “In my view, positioning is having a larger effect on markets than fundamentals and we can see this through the reaction to auctions. Firstly, Spain auctioned 10% of its annual funding requirement earlier this month, meeting solid demand for its debt, while the following day an Italian au...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Offshore Investment

New awards will celebrate excellence in Channel Islands financial services

Entries now open - deadline for submissions 8 June 2016

Professional Adviser
clock 17 March 2016 • 1 min read

Who won at the International Fund & Product Awards 2015?

Canada Life International, Schroders, and Old Mutual International among winners

Professional Adviser
clock 08 October 2015 •

Revealed: Winners of the 2015 Fund Services Awards

Firms offering services to asset managers honored at gala dinner

Professional Adviser
clock 08 October 2015 •