EU Bonds Fall as MSCI Denies Them Sovereign Gauges Inclusion
- Rejection not in line with market’s expectations, says Citi
- Bloc is classified as a supranational rather than a sovereign
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The European Union’s bonds fell on Thursday as bets they would soon be added to key sovereign benchmarks received a blow, undermining the bloc’s efforts to broaden the appeal of its debt.
The yield on 10-year notes rose two basis points to 3.10% after MSCI Inc. announced late Wednesday it won’t add the EU debt to its range of government bond indexes because market participants are divided on the topic.