Euro zone bond market gradually turning page on debt crisis
PARIS (AFP) - The euro zone bond market is gradually recovering from the disruption caused by the debt crisis, analysts say, with the gap in borrowing costs between fragile countries and Germany at two-year lows.
"The bond market is benefiting from both the staunch support of the ECB for one year and better-than-expected economic indicators for the past couple of weeks," said Mr Rene Defossez, a bond analyst at French investment bank Natixis.
"This cocktail is reassuring investors," he added.
A normalisation of the bond markets began in July last year when European Central Bank (ECB) chief Mario Draghi pledged to do "whatever it takes" to protect the euro and later unveiled a facility to provide massive support to countries implementing stabilisation programmes.