0711 GMT – The performance of eurozone government bonds was spoiled in September, as the third quarter ended with a plunge in bond prices, bringing the year-to-date performance to negative, says Elmar Voelker, senior fixed-income analyst at LBBW. “For much of the year, the cumulative YTD performance of the euro sovereign bond market had nurtured hopes that the historic price plunge of the previous year would be followed by a partial ‘redemption’,” he says. However, September delivered an “ice-cold shower” in this respect. The headwind from the U.S. government bond market has intensified to such an extent that the prices of the euro government securities have abruptly moved from the previous multimonth sideways movement into a steep fall, he says. (emese.bartha@wsj.com)
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