Peripheral Euro Bonds Attract Haven Demand Amid Trade Tensions
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Move over bunds, Europe’s peripheral debt is becoming the choice of investors as global trade war tensions escalate.
Italian bonds were the biggest gainers among euro-area sovereign securities in the wake of China’s riposte to the U.S.’s imposition of tariffs. That’s despite Italy still lacking a working government since its March 4 election, and German bunds traditionally being the go-to haven for investors in periods of heightened risk-off sentiment.