BlackRock prefers European government bonds over US Treasuries
'We prefer euro area government bonds and credit over the US,' strategists including Jean Boivin and Wei Li wrote in a weekly note. 'Yields are attractive, and term premium has risen closer to our expectations relative to US Treasuries.'
The strategists see sticky inflation keeping the Federal Reserve from cutting rates far. They also said high fiscal deficits may prompt investors to seek more compensation to hold long-term Treasuries.
Treasuries sold off over the past week after posting their best monthly performance since February last month as traders priced in the prospect of Fed rate cuts. Some of those bets have been rolled back after the US reported strong employment data for June.
Within the eurozone, BlackRock prefers peripheral bonds such as those from Italy and Spain. BLOOMBERG
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
4 hours ago
- Straits Times
While You Were Sleeping: 5 stories you might have missed, Aug 14, 2025
Sign up now: Get ST's newsletters delivered to your inbox US President Donald Trump said Russia would face "severe consequences" if Russian leader Vladimir Putin does not agree to stop his war in Ukraine. Trump threatens Putin if he blocks Ukraine peace US President Donald Trump threatened 'severe consequences' if Russia's Vladimir Putin does not agree to peace in Ukraine but also said on Aug 13 that a meeting between them could swiftly be followed by a second that would include the leader of Ukraine. Mr Trump did not specify what the consequences could be, but he has warned of economic sanctions if his meeting with Mr Putin in Alaska on Aug 15 proves fruitless. The comments by Mr Trump and the outcome of a virtual conference with Mr Trump, European leaders and Ukrainian President Volodymyr Zelensky held on Aug 13 could provide encouragement for Kyiv after fears the Alaska summit could end up selling out Ukraine by carving up its territory. However, Russia is likely to resist Ukraine and Europe's demands strongly and previously has said its stance had not changed since it was first detailed by Mr Putin in June 2024. READ MORE HERE India, Singapore ministers discuss deeper tie-ups PHOTO: INDIA'S MINISTRY OF EXTERNAL AFFAIRS India and Singapore explored deepening their engagement on digitalisation, skills building and industrial parks at a meeting of a key bilateral platform on Aug 13 during Deputy Prime Minister Gan Kim Yong's visit to the South Asian state. DPM Gan led a six-member Singapore delegation at the third edition of the India-Singapore Ministerial Roundtable (ISMR), which aims to boost collaboration between the two nations in emerging fields. Top stories Swipe. Select. Stay informed. Asia India, Singapore ministers discuss deeper tie-ups in digitalisation, skills, industrial parks Singapore askST: Public bidding possible if assets seized in $3b money laundering case are sold at auction Singapore 2 dead after fire in Jalan Bukit Merah flat, about 60 evacuated Singapore TB screenings at two pre-schools after staff member diagnosed in July Business Haidilao to close Clarke Quay outlet on Aug 31; exit follows 3 earlier outlet closures Singapore HSA seeks Kpod investigators to arrest abusers, conduct anti-trafficking ops Opinion How to train a drone warrior, with lessons from Ukraine Opinion The truth about AI: Firms will profit, workers will lose jobs According to a Ministry of Foreign Affairs press statement, the two sides reaffirmed the close and longstanding relationship between Singapore and India, underpinned by strong economic and people-to-people ties. READ MORE HERE Plastic pollution treaty talks in disarray PHOTO: EPA Attempts to secure a landmark treaty combating plastic pollution descended into disarray on the penultimate day of talks on Aug 13 as dozens of countries rejected the latest draft text, leaving the talks in limbo. With time running out to seal a deal among the 184 countries gathered at the United Nations in Geneva, several countries slammed a proposed compromise text put forward by talks chair Luis Vayas Valdivieso of Ecuador. A larger bloc of countries seeking more ambitious actions blasted what they consider a dearth of legally binding action, saying the draft text was the lowest common denominator and would reduce the treaty to a toothless waste-management agreement. READ MORE HERE 'Water lettuce' chokes tourism, fishing at El Salvador lake PHOTO: AFP The waters of El Salvador's Lake Suchitlan are normally busy with fishermen and tourists – but this year, you'd be forgiven for thinking it isn't a lake at all. The wetland, known for its biodiversity, has been overrun by a floating plant that feeds on chemical pollution, almost completely covering its surface and making it look like a lush, light-green field. Fed by the waters of the mighty Lempa River, Suchitlan is a 13,500-hectare artificial lake built around 1976, and supplies the Cerron Grande hydroelectric power station. READ MORE HERE PSG beat Spurs on penalties to win Uefa Super Cup PHOTO: AFP European champions Paris Saint-Germain began the new season by lifting more silverware on Aug 13 as they beat Tottenham Hotspur 4-3 on penalties in the Uefa Super Cup after producing a late comeback to draw the match 2-2. Spurs looked set to get their hands on the trophy in their first competitive match under new coach Thomas Frank as they led 2-0 just after half-time at the Stadio Friuli in Udine, Italy. Micky van de Ven gave last season's Europa League winners the lead on 39 minutes and Cristian Romero got their second goal three minutes into the second half.
Business Times
4 hours ago
- Business Times
Europe: Shares near two-week highs on Fed rate cut expectations
EUROPEAN shares hit a near two-week high on Wednesday, underpinned by gains in heavyweight healthcare and technology stocks, as near-certain expectations that the US Federal Reserve will cut interest rates next month buoyed sentiment. The pan-European Stoxx 600 index closed 0.54 per cent higher at 550.85. European healthcare stocks were the strongest performing sector, with a 1.6 per cent rise. The sub-index logged its fifth session of gains, the longest streak since late May. Genmab was up 3.8 per cent while Bayer rose 3.2 per cent. The technology sector bounced back from a three-month low hit in the previous session. Bets on a September Fed rate cut rose after Tuesday's tame US inflation data and with Treasury Secretary Scott Bessent saying there was a 'good chance' of a 50 basis point cut. Markets now fully price in a 25 bp cut, CME's FedWatch Tool showed. '(Fed) Chair Jerome Powell is going to be influenced most importantly by the job and the inflation numbers... if it's not September, you'll see (a cut) shortly thereafter, because there's a case for lowering at this point,' said Eric Schiffer, chief executive officer at private equity firm Patriarch Organization. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Germany's DAX rose 0.7 per cent after three sessions of declines. German inflation eased to 1.8 per cent in July, confirming preliminary data from Europe's biggest economy. Schiffer said that European stocks were benfitting from momentum in the United States, where the benchmark S&P 500 index hit a record high on Wednesday. US President Donald Trump said Ukraine must be involved in territorial talks with Russia, after a virtual meeting with European leaders on Wednesday, Trump and Russian President Vladimir Putin are due to discuss how to end the conflict in Ukraine, but Kyiv and its allies fear a deal could out Europe and Ukraine's security interests. Europe's broader aerospace and defence index reversed earlier gains to close flat. European company earnings have proven resilient, with LSEG I/B/E/S data on Tuesday showing that 54 per cent of companies reporting so far have beaten earnings. Shares of German tank gearbox maker Renk rose 2 per cent after it reported better-than-expected second-quarter revenue, benefiting from increased European defence spending. Nutrition supplement maker Glanbia was the best performer on the Stoxx 600 index, up 15.8 per cent, after increasing its full-year earnings outlook. UK insurer Beazley dropped 12.3 per cent, its worst day since September 2020, and the biggest faller on the index, after it trimmed its annual premium growth forecast. Sweden's Evolution fell 8.5 per cent after a Bloomberg report said its casino games had been distributed in banned markets. REUTERS
Straits Times
9 hours ago
- Straits Times
Trump floats meeting with Putin and Zelenskiy if initial Putin talks go well
Sign up now: Get ST's newsletters delivered to your inbox Russia's President Vladimir Putin and U.S. President Donald Trump shake hands during a bilateral meeting at the G20 leaders summit in Osaka, Japan, June 28, 2019. REUTERS/Kevin Lamarque/File Photo WASHINGTON - U.S. President Donald Trump said on Wednesday that if his meeting with Russian President Vladimir Putin goes well, he would like to have a quick second meeting with Putin, Ukrainian President Volodymyr Zelenskiy, and himself. "If the first one goes okay, we'll have a quick second one," Trump told reporters. "I would like to do it almost immediately, and we'll have a quick second meeting between President Putin and President Zelenskiy and myself, if they'd like to have me there." Trump did not provide a timeframe for a second meeting. He is to meet Putin in Anchorage, Alaska on Friday. Trump also said Russia would face consequences if Putin does not agree to stop the war. "Yes, they will," he said. He did not spell out the consequences but he has warned of stiff economic sanctions if no breakthrough can be achieved. Trump spoke after holding talks via telephone with European leaders and Zelenskiy about his meeting with Putin. Top stories Swipe. Select. Stay informed. Singapore 2 dead after fire in Jalan Bukit Merah flat, about 60 evacuated Singapore TB screenings at two pre-schools after staff member diagnosed in July Singapore HSA seeks Kpod investigators to arrest abusers, conduct anti-trafficking ops Opinion The 30s are heavy: Understanding suicide among Singapore's young adults Singapore Lawyer who sent misleading letters to 22 doctors fails in bid to quash $18,000 penalty Business Haidilao to close Clarke Quay outlet on Aug 31; exit follows 3 earlier outlet closures Singapore Jail, caning for recalcitrant drug offender who assaulted 2 cops with stun device Singapore SG60: Many hands behind Singapore's success story "We had a very good call. He was on the call. President Zelenskiy was on the call. I would rate it a 10, very friendly," he said. REUTERS
