Europe Bond Market Doubts Grow Over Recovery From War Rout

Europe’s bonds will struggle to bounce back from a sharp selloff triggered by the war in the Middle East, even if the conflict comes to a swift conclusion, according to market participants.

While bonds have staged intermittent rallies on optimism that hostilities might ease, the sector remains highly volatile. Sovereign debt across Europe slid again Thursday, with US President Donald Trump threatening to escalate military action, making for the biggest daily jump in German 10-year yields in a year.