Monthly report
Europe outperforms Treasuries on FX and policy easing
Download the latest reports
Overview
Gold remains the major beneficiary, and the US dollar the main casualty of policy uncertainty, despite the 90-day suspension of US tariffs. Curves bull steepened as central banks focus on weak growth, though Fed caution remains. Lower rates and strong currencies drove strongest returns in short Europe. Credit largely unscathed from tariff turbulence.
Key highlights:
- Macro and policy backdrop – Fed awaits tariffs, but ECB growth concerns rise
- Yields, curves and spreads – G7 curve steepening continues, driven by policy easing
- IG credit and MBS – BBB remains the strongest performing credit bucket
- High yield credit analysis – CCC has recovered well, helped by tariff delays
- SI bond analysis – Green bonds’ USD underweight remains a key theme
- Performance – US dollar weakness, and Euro and yen strength dominate returns
Please note the Europe edition combines the previously published UK and Eurozone versions of Fixed Income Insights.
These reports provide actionable insights on global fixed income markets. They cover shifts in global yield curve and credit spreads, across sovereign, inflation-linked and corporate indices, and FX-adjusted return performance using proprietary month-end data from our global fixed income indices.
For specialist content on a range of investment topics, including macroeconomic analysis and how it affects market performance and multi-asset analysis, viewed through our indices and data, explore our Global Investment Research hub.
