On December 31st, Bank of America analysts stated in a report that there will be more funds flowing into euro investment grade bonds in 2024 than into government bonds and stocks. Bank of America stated that the supporting factor for this trend is the increased demand for higher yields in the market as interest rate cuts lead to a decrease in government bond yields. As interest rates continue to decline in 2025, we believe that the inflow of funds into investment grade bonds will continue to increase, surpassing the inflow of funds into other ‘risk-free’ assets
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