We examine the bilateral composition of international bond portfolios for the euro area and the individual EMU member countries. We find considerable support for euro area biasʺ: EMU member countries disproportionately invest in one another relative to other country pairs. Another striking...

We examine the bilateral composition of international bond portfolios for the euro area and the individual EMU member countries. We find considerable support for euro area bias: EMU member countries disproportionately invest in one another relative to other country pairs. Another striking...