MTS has launched a new range of macro-weighted government bond indices aimed at providing an accurate picture of the economic situation of Eurozone countries.

The indices in the EuroMTS Macro-Weighted AAA Government Bond Index range use a weighting methodology measuring the short- to long-term economic performance of Eurozone countries with the highest credit rating. It uses four indicators to establish each country’s weighting: government debt as a percentage of GDP, current account as a percentage of GDP, quarter-on-quarter GDP growth and long-term interest rates.

“MTS, by providing these indices calculated with a new weighting methodology, brings investors a set of diversified benchmark instruments, reflecting more accurately the economic potential and the prevailing sovereign risks in the Eurozone government bond markets,” said Jack Jeffery, CEO of MTS. “We believe these indices will be adopted as portfolio benchmarks, which can be tracked by instruments such as ETFs.”

The new range includes an all-maturity index and six maturity sub-indices. Country weightings will be reviewed on a quarterly basis, while bond selections and weightings will be rebalanced on a monthly basis.