European government paper looks attractive

Lowered investor expectations of a European interest rate rise and creating a good environment for g...

Lowered investor expectations of a European interest rate rise and creating a good environment for government bonds in the region, according to Raffaele Burtoni, head of fixed income at Pioneer Global Investments. Amid sluggish economic growth and concerns that the strength of the euro will negatively impact European exports, Burtoni says the ECB will be reluctant to raise interest rates, which is good for European sovereign debt. Stewart Cowley, head of fixed income at Newton, says rate expectations have already fallen by a full 0.5% since December. He says: "The lack of progress on the...