The demand for safe assets dominated asset flows in February. The main beneficiary of the risk-off trade last month: foreign government bonds in developed markets. Citigroup’s World Gov’t Bond Index ex-US surged 4.0% in February (unhedged US dollar total return). The gain also pushed this slice of the fixed-income market into first place for the trailing one-year period with a 1.7% increase.
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● Eurozone jobless rate dips to 10.3% in Jan | Reuters
● PMI: Eurozone mfg growth slows to 12-mo low in Feb | Markit
● China’s manufacturing PMI highlights sluggishness | MarketWatch
● Fed’s Dudley: US economic risks have increased | Reuters
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