MUFG research head: Loss of market confidence in US assets benefits eurozone bonds

TechFlow, April 23 — According to Jinshi Data, Halpenny, head of research at MUFG, said investors are losing confidence in U.S. assets, potentially benefiting eurozone government bonds. Halpenny noted that German government bonds have outperformed U.S. Treasuries, while the yield spread between French and German bonds has remained relatively stable. Data from Japan's Ministry of Finance for February supports this view. He stated that bond purchases by Japan from the eurozone's four major sovereign issuers—Germany, France, Italy, and Spain—reached the highest level since March 2019. The total amount invested by Japan in these countries' bonds was 1.604 trillion yen, including 618 billion yen in French bonds—the highest since June 2019.