European bonds beat American bonds in terms of yields

Debt instruments of the largest European government issuers unexpectedly began to show yields lower than those of comparable US Treasury bonds. This highlights the gradual decline in the attractiveness of U.S. government securities against the backdrop of global economic changes.

The bonds of the European Investment Bank (EIB) and German lender KfW have proved more profitable for investors in recent trading sessions, which became noticeable back in April, when the introduction of US tariffs caused market instability and called into question the status of the United States as a «safe haven». According to experts, this is due to concerns about the economic outlook, inflation, rising government debt and trade conflicts in the United States.

It is surprising that US Treasury bonds, known for their liquidity, are inferior to EIB and KfW securities. These European issuers have the highest AAA credit rating, which the United States lost after Moody's May downgrade. This has increased the interest of more conservative investors, who are more cautious about investing in American assets.