European Union bonds take a hit after MSCI index exclusion By Reuters
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- EU Bond Inclusion Rejection: MSCI decided not to include EU debt in its government bond indexes, disappointing EU officials who sought equal treatment with states.
- Market Reaction: EU's borrowing costs rose as investors reacted to MSCI's decision, pushing 10-year and 30-year bond yields higher initially.
- Investor Sentiment: Despite the setback, EU bonds remain attractive due to top Triple A ratings, potentially becoming more appealing with any cheapening.
- Future Implications: Uncertainty remains on how other index providers like Bloomberg and iBoxx will respond to MSCI's decision.
- Fiscal Integration Concerns: The EU faces challenges regarding index inclusion due to temporary pandemic borrowing programs and potential opposition to further fiscal integration efforts.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
