JPMorgan Asset Management sees bond value as energy prices fall, favors European government debt

Falling energy prices are strengthening the case for bonds, with European government debt potentially benefiting more than US Treasuries, according to Ian Steely of JPMorgan Asset Management. In a Bloomberg interview on November 5, Steely said the drop in oil prices was the main force driving bond yields lower. Despite the recent rally, yields remained elevated, offering value in owning bonds and taking duration exposure, he said. Steely identified two other supportive factors: limited scope for fiscal conditions to deteriorate further and a possible slowdown in the AI sector.

Source: TokenPost