Eurozone government bond issuance is expected to increase in 2026 along with credit rating upgrades. Despite rising public debt, stability in euro government bonds is anticipated. France is seen as a weak point in the euro area. Bond spreads are narrowing in the eurozone, showing convergence between core and peripheral countries. European countries are expected to issue more debt in 2026, with France facing economic weakness and political instability. The ECB and Fed have diverging monetary policies, impacting government bond yields. Bond managers are favoring intermediate maturities and cautious on the long end of the yield curve.

Read more at Morningstar: What’s the Outlook for European Bonds in 2026?