Europe Bond Market Doubts Grow Over Recovery From War Selloff

The war in the Middle East has triggered a sharp selloff in European bonds, and market participants warn bonds will struggle to recover even if the conflict ends swiftly. Expect higher yields and sustained risk premia across European sovereign and corporate debt, keeping fixed-income markets in a prolonged risk-off/volatile state.

Analysis

The war in the Middle East has triggered a sharp selloff in European bonds, and market participants warn bonds will struggle to recover even if the conflict ends swiftly. Expect higher yields and sustained risk premia across European sovereign and corporate debt, keeping fixed-income markets in a prolonged risk-off/volatile state.