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Traders Take Wall Street’s Advice to Come Back to European Bonds

  • Deutsche Bank and UBS strategists say buy euro debt next year
  • European bond spreads have tightened by the most in two years

As Wall Street starts unveiling its 2023 outlooks, an early favorite is quickly emerging: Europe’s safest corporate bonds.

So strong is that bullish sentiment, in fact, that traders bidding up prices on the bonds have helped drive down their yield premium over government debt by the most in two years.