Bank of France: Eurozone government bond market shows calm performance, lacks momentum.

The interest rate strategist at Societe Generale in France stated in a report that the Eurozone government bond market lacks momentum, with narrow yield spreads and low volatility. These strategists stated that investors are therefore taking advantage of carry trades and searching for signals in this low-noise market. Seasonal factors may lead to poor performance in peripheral country bonds, "but we expect this situation not to last too long." These strategists also stated that politics has always been a source of volatility in Italian government bonds, so the Italian referendum in March is being closely watched. Italy plans to hold a constitutional referendum next month on judicial system reform. "Overall, we do not expect any political shocks, and any market reactions should be seen as short-term noise."