When Mario Draghi pledged to hold together the euro area, the endorsement in bond markets was immediate and enduring. Now it’s time to back him again as he vows to rekindle inflation, France’s biggest bank says.
Families holding historically large amounts of U.S. Treasuries are creating a potential price bubble as concern about a double-dip recession spurs demand for assets perceived to be safe, according to Credit Agricole CIB .
The world’s biggest economies will need to refinance $7.43 trillion of sovereign debt in 2014 as bond yields begin to climb from record lows, threatening to raise borrowing costs while nations struggle to bring down elevated budget deficits.
European government bonds jumped, with yields from Ireland to Greece dropping to the lowest since at least 2010, as signs of the region’s economy is recovering helped spark a surge in demand for the securities.