Investors pile in to eurozone debt ahead of ECB easing

Anna Fedorova

Inflows into European peripheral debt have soared as investors prepare for a widely expected announcement of quantitative easing by the European Central Bank (ECB).

The bank is expected to announced a bond purchasing programme in its meeting on 22 January, with most market participants expecting it to amount to €500bn. The prospect of QE and continuing deflation have made eurozone peripheral debt particularly attractive, and investors have piled into Spanish government bonds ahead of the ECB meeting. On Tuesday, Spain made one of its largest ever bond sales worth as much as €23bn, with investors from across the globe pouring in money. Yields on 10-year Spanish debt fell to 1.5% by Tuesday, to less than half the 4% yields seen last year, as inc...

To continue reading this article...

Join Investment Week

  • 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

Join now


Already an Investment Week


More on Europe

Equity funds managed to stay in positive territory with €2.9bn of new net subscriptions

Morningstar: European fixed income funds suffer €16.5bn net outflows in May

Equity funds remained in positive territory

clock 23 June 2022 • 1 min read
Amazon shares are down 40% from its peak

Growth stock pickers feel like 'a kid in a candy shop'

'It is time to go shopping'

clock 22 June 2022 • 4 min read
Brexit Blog: Johnson cites 'doctrine of necessity' to override Northern Ireland protocol

Brexit Blog: Johnson cites 'doctrine of necessity' to override Northern Ireland protocol

The latest on the UK's life outside the EU

clock 14 June 2022 • 1 min read