We expect E-Z “peripheral” spreads to remain low

While we no longer expect peripheral spreads to narrow this year, we still think that they will remain close to their current levels, which are close to the lowest since the Global Financial Crisis.
Franziska Palmas Markets Economist
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Drop-In: Evergrande – What are the risks to China and the world? Chief Asia Economist Mark Williams and Senior China Economist Julian Evans-Pritchard will be joined by Senior Markets Economist Oliver Jones to take your questions about the Evergrande situation. They’ll be covering the implications of collapse for China’s financial system and growth outlook, and assessing the global markets fallout. Register here for the 0900 BST/1600 HKT session on Thursday, 23rd September.

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More from Franziska Palmas

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The ECB’s new guidance and its implications for E-Z bonds

We don’t think the changes to the ECB’s guidance announced today or the Bank’s recent strategy review materially alter the near-term outlook for government bonds in the euro-zone. However, they make us even more confident in our view that the yields of euro-zone government bonds will rise only gradually over next few years and that “peripheral” spreads will remain low.

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We still expect high US inflation to weigh on Treasuries

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13 July 2021
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