Inflation has reached all time high levels, being situated around 8.1%. Under this current situation, Euro Inflation-linked bond funds offer long-term protection against inflation.
The market has seen significant growth over the past few years, with total market capitalisation now standing at $865 billion, making for a more liquid and diversified market.
The composite PMI increased to 55.8 (from 54.9), a level clearly consistent with ongoing growth. This rise was driven by higher services sector sentiment which in turn largely benefitted from the unwinding of Covid stringency measures.
Over the past two years more wealth managers have put bond ETFs at the center of their portfolios and institutional adoption of bond ETFs has broadened and deepened.
This is the worst start of the year for bonds. Therefore, investors need to learn a different and more active approach.