European Bonds - Still More To Give

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Jul. 22, 2025 5:16 AM ETVGK, FEZ, IEV, EZU, DFE, FDD, FEP, SPEU, HEDJ, DBEU, EUDG, IEUR, HEZU, FEUZ, DBEZ, IEUS, OPPE, OEUR, EUDV, PTEU, GSEU, RFEU, FLEE, FLEU, BBEU, FPXE, EURLNeuberger Berman3.18K FollowersSummaryWhile the ECB is expected to pause further interest rate cuts at its next meeting on July 24, we believe it is unlikely to be the end of easing this year, extending the supportive backdrop for European fixed income markets.We are expecting another two cuts to the current key rate of 2% in the second half.Our expectations for persistently stable inflation going forward should help European rates markets to broadly perform, potentially delivering healthy carry and rolldown returns over the near term.While we continue to see attractive opportunities to invest across European rates and credit markets, we remain vigilant of some of the fiscal challenges faced by core European countries such as France and others.Torsten AsmusBy Ashok Bhatia, CFA, Robert Dishner, Paul Grainger and Yanick Loirat, PhDBenign inflation, a dovish central bank, and healthy yields have helped boost the global attraction of European government bond and credit markets. With further monetary easing expected, European fixedThis article was written byNeuberger Berman3.18K FollowersNeuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 23 countries, Neuberger Berman’s team is more than 2,100 professionals. For five consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). Tenured, stable and long-term in focus, the firm has built a diverse team of individuals united in their commitment to delivering compelling investment results for our clients over the long term. That commitment includes active consideration of environmental, social and governance factors. The firm manages $323 billion in client assets as of March 31, 2019. For more information, please visit our website at www.nb.com.For important disclosures: https://www.nb.com/disclosure-global-communications  Contact Us: Advisor Solutions (877) 628-2583 advisor@nb.com RIA & Family Office (888) 556-9030 riadesk@nb.comCommentsRecommended For You