Corporate debt looks set to outperform Treasuries

Eurozone government debt could outperform US Treasuries in 2003, but the relative cyclical outlook f...

Eurozone government debt could outperform US Treasuries in 2003, but the relative cyclical outlook favours US corporates. In addition, deflation and concerns about the fiscal path will continue to drive Japanese government bonds, says Dennis Adler, a fixed interest analyst at Citigroup. Adler says: 'The combination of massive policy stimulus and a gradually improving economy punctuated by the uncertain fallout from war poses challenges for US fixed income investors in the months ahead. At the outset, improving inflation trends and lingering downside economic risks argue against aggressi...