Currency Analyst since 2010

Citi: why EUR is attractive

Analysts at Citi point out that the euro zone’s peripheral bonds now offer low volatility and high yields – a combination which is quite attractive for investors.

Look at the daily volatility in Spanish (red) and Italian (light blue) 10-year yields going down. The volatility ofUS 10-year Treasuries (purple line), on the other hand, has significantly increased.

Conclusion: however much investors are skeptical long-term of the EUR’s growth and financial prospects, euro area looks attractive for monetary inflows and that’s a EUR-positive factor.  

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