All the Risks Besieging Europe Bonds Are Spilling Over Into 2019
- Italy, global trade tensions loom once again as main risks
- German bunds to see support from ECB holding interest rates
This article is for subscribers only.
For the European bond investors who survived a bruising 2018, there may be bad news in the year ahead.
Higher government spending and political uncertainty threaten rising debt yields in Italy and France, which could spill over elsewhere. Markets don’t expect the European Central Bank to raise interest rates given slowing growth and trade risks, making a sell-off in Germany’s haven bunds look unlikely.