Bloomberg reports growing investor interest in euro bonds amid dollar decline

The dollar continues to cause turmoil in the markets, increasing the attractiveness of euro bonds. Since the beginning of the year, the dollar index has lost about 8%. Donald Trump's import tariffs and his jabs at the Federal Reserve are undermining trader confidence in the US currency. Asset managers are now revising their investment strategies and diversifying their portfolios, Bloomberg reports.

From January 1 to July 18, companies and governments in developing economies issued more than $100 billion in eurobonds—the highest figure for the period since at least 2014. According to Bloomberg, government issuances alone have already exceeded the full-year total for 2024. Most of the euro-denominated debt securities belong to Eastern European countries, but in recent months, markets have also shown active interest in such borrowers as Chile, South Korea, and China.

As Goldman Sachs estimated, traders responded favorably to the increase in bond issuance in the European currency. They expect the observed trends to continue in the near future, as the dollar is likely to keep weakening.