Daiwa Comments on Tuesday's Germany Bunds, U.K. Gilts

BY MT Newswires | ECONOMIC | 02/10/26 12:14 PM EST

12:14 PM EST, 02/10/2026 (MT Newswires) -- While the unemployment rate in France rose by more than expected, eurozone sovereign bonds followed United States Treasuries higher on an otherwise quiet Tuesday for economic data, said Daiwa Capital Markets.

In terms of economic data, the coming two days should be relatively quiet for the eurozone, noted the bank.

Despite a slightly stronger United Kingdom retail sector survey, longer-dated Gilts also made gains on Tuesday, stated Daiwa.

While there remains the risk of further political noise with U.K. Prime Minister Starmer likely to remain under pressure, Wednesday is set to be a quiet day for United Kingdom economic data, added the bank. However, Thursday will bring preliminary estimates of U.K. gross domestic product growth in Q4.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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