Fixed-income investors play a key role as creditors in assessing material environmental, social and governance (ESG) risks and opportunities that may impede creditworthiness of bond issuers. While E
“Moreover, the small and medium-sized business destruction in many countries not seen since the Great Depression may take years to replace. Given this backdrop, Western Asset expects central banks to remain extraordinarily accommodative for the foreseeable future,” the firm said.
According to Western Asset, the key drivers behind the global outlook and the value across global fixed-income markets would include realized US growth would fall short of the expectations that seem to be built into current market pricing due to absence of a complete full-capacity reopening of restaurants, hotels, airports, theatres, etc.
Following this, rebound expectations for continental Europe were hampered by the slow vaccine rollout and by renewed lockdowns in Q1 and early Q2.
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LONDON Euro zone bond yields edged higher on Monday, reflecting brighter sentiment in world markets and a growing sense the worst may be behind for a coronavirus-battered economy.
Most 10-year bond yields across the currency bloc were up 1-2 basis points on the day, while U.S. Treasury yields were also a touch higher.
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While bond markets have stabilized from a U.S. led selloff earlier this year, improving economic indicators and a pick up in the COVID-19 vaccination rollout have started to put some upward pressure on euro area borrowing costs.