Bank of China: Bonds provide safe value at a time when popularity is fragile.

The interest rate strategist of Societe Generale Bank in France stated in a report that the fragile stock market sentiment and geopolitical uncertainties have provided support for the safe value of bonds. In this context, they are maintaining long positions in German government bonds relative to swaps. In the eurozone government bond sector, Societe Generale Bank in France insists on holding three to five-year bonds and swaps to capture the yield spread, but advises against increasing these trades at current levels. These strategists expect that the volatility of long-term interest rates in the Eurozone will continue to be greater than the yield curve at the short and medium term.