Weak Growth, Inflation Outlook Help Lift International Bond ETFs August 2, 2021
Eurozone government bonds have been rising in recent weeks on fears of a slowdown in Europe. Fixed income investors can also diversify with the strengthening global debt markets through international bond exchange traded funds.
Yields on the benchmark 10-year German bund dipped to negative 0.483% Monday, its lowest level in over five months, the Wall Street Journal reports. In comparison, yields on the German bunds rose to a high of minus 0.108% back in May. Bond yields have an inverse relationship to prices.
Investor demand for European sovereign debt rose due to a weakening outlook for the region in response to the Covid-19 Delta variant. Many are concerned that governments could reinstate broad restrictions and curb social activity and travel. Europe has also been struggling to stimulate its low inflation figures, which has helped fuel bets that the European Central Bank could maintain bond purch
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