Barclays: The yield spreads of Eurozone sovereign bonds continue to narrow.

Barclays interest rate strategist stated in a report that despite the narrow starting point and busy issuance schedule so far this year, the yield spread of government bonds in the eurozone has continued to show a narrowing trend. They indicated that from an internal and individual perspective, there are more solid reasons to believe that these yield spreads will further tighten. "This to some extent reflects the political and fiscal challenges faced by core/semi-core economies, while the former peripheral country group continues to keep political noise at a minimum and improve their fiscal situation," Barclays strategists said.