Weak Economic Data Would Test Bonds In The Periphery

Includes: EU, VGK
by: Claus Vistesen

Volatility has engulfed the eurozone in the past few weeks, but bond markets remain a relative sea of calm. This could change quickly, however, if the economic data in the periphery takes a serious turn for the worse. Given the absence of active balance sheet expansion at the ECB, Q3 PMIs have suddenly taken on critical importance.

Picture is courtesy of Pantheon Macroeconomics, and has also been posted on Twitter.