Eurozone inflation is coming full circle

As 2023 comes to a close, we discuss the attractiveness of the European fixed income market as eurozone inflation continues to fall sharply.

What does this mean for fixed income investors?

With a continuous disinflation story, and rebounding but below-trend growth, the European bond market could be appealing to investors looking to increase fixed income allocations—and may deserve favourable consideration over other developed countries and regions as we approach the new year. In global portfolios investors may consider a bias towards Europe. Apart from adding exposure in the core government space, we like peripherals and eurozone credit as growth is holding up.

About the Bond Bulletin

Each week J.P. Morgan Asset Management's Global Fixed Income, Currency and Commodities group reviews key issues for bond investors through the lens of its common Fundamental, Quantitative Valuation and Technical (FQT) research framework.

Our common research language based on Fundamental, Quantitative Valuation and Technical analysis provides a framework for comparing research across fixed income sectors and allows for the global integration of investment ideas.

 

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