SHIFT FROM STOCKS TO BONDS IN EUROPE 3/3

After reaching peaks of uncertainty in Q1, tensions in the Middle East began to ease in May. The 10-year German Bund, the market benchmark, eased to trade around 2.85% after hitting the 3.2% threshold. The deterioration in economic activity in the eurozone contributed to this easing. Faced with the risk of a sharp slowdown and stagflation, investors adjusted their allocations by taking advantage of better yields, particularly on sovereign debt. The European Commission unveiled its financing plan for the second half of the year, which calls for the issuance of 80 billion euros.