JPMorgan AM, MFS Bet on European Debt After Sharp Selloff

Investors including JPMorgan Asset Management, BlackRock Inc. and MFS Investment Management are buying shorter-term European government debt in an effort to lock in yields before they slip away.

The money managers are targeting bonds that sold off in recent months on expectations the European Central Bank would forcefully hike borrowing costs in response to inflation spurred by the Middle East war. Yields on two-year German government debt, which are sensitive to changes in the outlook for interest rates, rose to the highest level in nearly two years.