Record breaking declines in European bond market for August

Inflation hits 9.1%

clock • 2 min read

Europe’s bond market is on track for its worst month since records began, as the market for high-grade government and corporate debt fell 5.3% in the month to Tuesday 30 August.

The sell-off was widespread across the bloc, with declines in UK, German and French bonds as investors prepared for central banks to toughen its stance on rates. This was the biggest drop in the Bloomberg Pan-European Aggregate Total Return index since it was established in 1999, driven by anxious investor sentiment over further central bank action off the back of surging prices, spurred by Russia's war in Ukraine. Annual inflation across Europe rose to 9.1% this month, according to figures published yesterday (Wednesday 31 August) by Eurostat. Europe posted 8.9% inflation in July, up...

To continue reading this article...

Join Investment Week for free

  • 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 Economics