The gap between stocks and bond yields has highlighted concerns about debt sustainability, causing instability in global markets. Despite the general tension, the eurozone has been relatively stable due to its strong fiscal position. Massive bond sales swept the markets, but the most vulnerable assets were in countries with fragile budgets. In the US, stocks, treasuries and the dollar were under pressure at the same time. The yield on 10-year US bonds exceeded 4.5%, and 30-year – 5%, which changed the leadership in the stock market in favor of defensive sectors. Analysts believe that the ECB has great potential to cut rates compared to the Fed, the Bank of England and the Bank of Japan. This may help reduce German bond yields and reduce spreads between countries with weaker economies.
RYCHLÉ ODKAZY