Europe is currently experiencing unprecedented euphoria in its bond market, as investors worldwide are eager to lend. According to Bloomberg, since the beginning of 2024, the demand for European debt has hit an all-time high. Investors are ready to invest a staggering €1 trillion, even though the actual volume of bids is five times less, amounting to €221.5 billion. Analysts have observed that not only major funds but also individual investors are queuing up to purchase European bonds. Experts have noted an exceptional market activity, buoyed by confidence in the stability of the European economy and expectations of an imminent rate cut. It is worth noting that if this scenario plays out, the yield on both government and corporate bonds is expected to decline significantly. As of now, more than 50% of the bids, amounting to €550 billion, are targeting European government debt. Bonds from Italy, Spain, and France are particularly attractive to investors, with the average yield on Eurobonds at 3.7%. Currently, corporate bonds have been issued by 140 leading companies. In contrast, the Chinese stock market is showing negative trends. At the beginning of 2024, the CSI 300 index, which reflects the performance of the largest Chinese companies, dropped by more than 4%. Experts predict that the CSI 300 may continue to show poor results by the end of January, potentially marking the sixth consecutive month of decline for this index.
