Poor German growth fortifies high grade credit
Germany’s worse-than-expected GDP figures were bad news but investment grade bond yields remained flat, or by some accounts even tightened, on the release of the data on Thursday morning.
German GDP shrank by 0.2% in the second quarter of the year, 0.1% more than forecast.
The poor performance of Eurozone economies brings the possibility of further ECB stimulus measures closer and reinforces expectations that Europe’s low rates environment is here to stay.
“It’s difficult to see a catalyst ...