Euro-Zone Bonds Likely to Rise

John Wraith, head of U.K. rates strategy and economics at UBS, discussed the impact of trade tensions on investment flows and the spread between U.S. and core euro-zone bond yields with Bloomberg.

Related: The Best Europe ETF Plays for the Summer

Points discussed during the interview:

  • More capital inflows into ETFs in the U.S. correlated with outflows of capital from Europe as investors look for safe havens
  • A lot of strength moving the U.S. recovery since the Financial Crisis of 2007-08
  • The U.S. Federal Reserve remains on course to raise interest rates for the rest of 2018 and possibly beyond
  • Yields moving higher on shorter-dated bonds, increasing its appeal
  • Trade concerns and questionable economic recoveries taking place in other parts of the world
  • Investors are nervous, but see opportunities in varying growth rates around the world
  • Opportunities can be found in seeing through trade fear news–spread between government bond yields is highly unusual and could represent an opportunity with high Euro-zone bond yields

To watch the full video, click below:

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