Bank of France: Government bonds of peripheral countries outside the Eurozone are expected to continue outperforming.

The interest rate strategist of Crdit Agricole stated in a report that the outstanding performance of government bonds in the Eurozone peripheral countries may still be the dominant theme in 2026. They believed that this would be supported by stronger economic fundamentals, improving credit ratings, and resilient capital flows. These strategists noted that, in contrast, core and semi-core countries - especially France and Germany - face political uncertainty and heavier government bond supply pressures. They said, "Overall, it is expected that yields will further converge, but with smaller fluctuations and tactical opportunities."