Peripheral European government bonds remain attractive in spite of volatility

In Kürze

Mauro Valle discusses the recent turbulence in bond markets and explains why, despite the current volatility, Italian and peripheral government bonds remain an attractive way to maximize risk-return.

Central banks double down to fight inflation

 It has been a tumultuous week for global fixed income markets, after major central banks hiked rates sharply to combat inflation. After stronger than expected US inflation data, the Federal Reserve hiked rates by 0.75% and the market is expecting rates to end the year at around 3.25-3.5%. 

The key risk is that steep hikes will lead to a repeat of the 2018 global sell-off of risky assets and an economic slowdown, as  demonstrated by the noticeable tightening of financial conditions in recent weeks. The US 10-year Treasury yield, an economic bellwether, touched 3.5% before the last Fed meeting, raising the risks of a Fed-induced recession.

 

READ THE FULL ARTICLE

Peripheral European government bonds remain attractive despite volatility
Picture

© Generali Investments, alle Rechte vorbehalten. Diese Webseite wird von Generali Investments zur Verfügung gestellt und gilt als Marketingkommunikation und Finanzwerbung in Bezug auf die Produkte und Dienstleistungen der folgenden Unternehmen der Generali Gruppe: Generali Investments Partners S.p.A. Società di gestione del risparmio, Generali Insurance Asset Management S.p.A. Società di gestione del risparmio, Generali Investments Luxembourg S.A. und Generali Investments Holding S.p.A. (im Folgenden zusammengefasst Generali Investments). Darüber hinaus kann die Webseite Marketingkommunikation und Finanzwerbung für Produkte und Dienstleistungen von Unternehmen enthalten, die Teil der von Generali Investments Partners S.p.A. Società di gestione del risparmio koordinierten Plattform sind, insbesondere von Generali Global Infrastructure, Sycomore Asset Management, Aperture Investors LLC, Plenisfer Investments SGR, Lumyna Investments und Generali Real Estate S.p.A. Società di Gestione del Risparmio.