Bond market trends: divergence European and American yields resumes
The rates stabilised around -0.30% for German 10-year bonds, following the rising trend in the first two months of the year, incited by an accelerated purchase of bonds by the ECB and stricter lock-down measures in various European member states. The spreads of the southern countries of the eurozone remained stable in the past month. The rising interest trend continued in the US. The 10-year yield reached 1.75%, the highest level since January 2020. Contrary to February, the rise of nominal American interest rates can be totally attributed to the rise in the inflation expectations, while the real interest remained stable.
On balance, spreads of corporate bonds remained stable in the past month, both for the investment grade and for the high-yield segment.