7Mon·

European government bonds?

$XGLE (-0.27%) Interest rates are falling in Europe, the stock markets in the USA are running out of steam and European government bonds are losing ground? This ETF by 2 percent in one day? Why?

In principle, I expect a performance of 3 percent per year with little volatility...

4 Comments

Epi@Epi

7Mon

Have you read the news in the last few days?
USA drops Europe, Europe must now invest massively itself. This requires massive new debt. What happens when the supply of a good (government bonds) suddenly increases massively? Right, the price falls.
The ECB only controls the overnight interest rate; long-term interest rates, such as in the ETF, are normally determined by the market. There should be more to come in the coming weeks and months. 🤷

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