BMI Research: Emerging Markets Monitor: European Markets: Treasury Divergence, Equities To Stay Weak.

The article presents forecasts for asset classes and national markets across Europe for 2010. Interest rate expectation will be re-priced in light of the potential of treasury yields to compress further. Yields on government bonds is expected to be driven lower by a weak growth outlook. A large degree in volatility was also shown throughout the eurozone. The implications of the compression of yields in other asset classes in northern Europe are discussed.