Fund managers are avoiding German government bonds despite panic over peripheral nations sending investors running to the perceived safety of the eurozone's largest debt market.
The move to shun bunds comes after a chaotic week which saw yields on the bonds of core European countries, including Spain and Italy, hit record levels. Spreads on European debt over bunds also widened to euro-era highs. The ECB is now expected to act imminently by buying up debt, with investors warning of a meltdown in confidence. German yields jumped briefly following comments from the country’s chancellor, Angela Merkel, that Germany was ready to cede some of its sovereignty to save the eurozone. However, the rally was short lived and bund yields remain near record lows, with t...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
