International Finance: Treasuries will leave Europe’s bonds in the dust, investors say

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 36 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 84%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

The inflation fight in Europe will drag for so long that it will tarnish the appeal of the region’s debt this year, a survey of investors shows.

The European Central Bank’s deposit rate will top 3.5% after another 1.5 percentage points of hikes, according to more than a third of 201 investors in the latest MLIV Pulse survey. An additional 15% see it heading to 4% or above, which would be a record level. That helps explain respondents’ strong conviction that euro area bonds will underperform US Treasuries this year.

There’s been no lack of warnings for investors from policy makers: ECB Governing Council Members Olli Rehn and Pablo Hernandez de Cos are the latest to say there are still “significant” rate rises ahead. “I think there’s a non-trivial probability TPI will be used, if you think about raising rates and the massive supply coming,” said Greg Peters, co-chief investment officer at PGIM Fixed Income. “They can’t afford to have Italian spreads blown out.”

The economic outlook has recovered so much that Goldman Sachs Group economists no longer predict a euro-zone recession for 2023. They nowgross domestic product to grow 0.6% this year, compared with an earlier forecast for a contraction of 0.1%.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

International Finance: Asian stocks climb; dollar edges lower, yen gains: markets wrapAsian shares started the week higher with a tailwind from US stocks closing at the highest in a month as easing inflation expectations fuel January’s global share rally. The dollar declined.
Source: dailymaverick - 🏆 3. / 84 Read more »

THE FINANCE GHOST: A crash course in crashes2022’s market wringer was anything but fun for just about everyone. But its lessons were many and invaluable — and will make you a better investor, writes FinanceGhost.
Source: FinancialMail - 🏆 20. / 63 Read more »

PHANTOM SHARES: The Finance Ghost — Why is Steinhoff still trading at all?If you can imagine a MyCiTi bus on fire in a Cape Town protest, buying Steinhoff shares at this point is like buying a ticket to ride on that bus. Wasnt steinhof 27c fairly recently? - an almost 100% rise then for those selling now, outstripping most blue chip shares' performance
Source: dailymaverick - 🏆 3. / 84 Read more »