FIXED INCOME
Rates convergence in Europe
Some country spreads are near all time high, driven by differences in growth/inflation and budget deficits
5-year Sweden/Eurozone spread
100 120 140 160
Titre du graphique
• Central banks have begun reducing their policy rates but with different start dates and different pace of cuts
20 40 60 80
41
-40 -20 0
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
• Budget dynamics have once again become a concern for investors
Average
10-year UK/Eurozone spread
200
150
• A global slowdown should push rates to converge globally
100
50
37
0
-50
-100
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 Average
Public Source: Rothschild & Co Asset Management – 31/12/2024 The geographical and sector allocations and breakdowns are not fixed and may change over time, within the limits of the fund's prospectus. This presentation contains historical market data. Historical market trends are not a reliable indicator of future market behaviour. These data are provided for illustrative purposes only. Depending on the date of publication, the information presented may differ from the updated data .
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