1701 GMT - Euro-denominated corporate bonds are expected to move in small ranges in the coming months as falling sovereign yields offset wider spreads, LBBW credit analysts say in a note. Yields on euro corporate bonds are likely to decline in line with sovereign bond yields as the European Central Bank cuts interest rates. Meanwhile, euro credit spreads could widen modestly as they are already at narrow levels and vulnerable to poor eurozone economic performance, the analysts say. "The prospect of falling key interest rates suggests a downward trend in capital market yields, which should compensate for the negative effect of a slight widening of spreads," they say. (miriam.mukuru@wsj.com)

(END) Dow Jones Newswires

February 14, 2025 12:01 ET (17:01 GMT)

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