Pimco and M&G have gathered €12bn across their largest European bond funds this year, as asset managers gear up for a surge in fixed income appetite amid predictions interest rates could peak in the coming months.

California-headquartered Pimco pulled in €5.9bn across its flagship GIS Income fund between January and the end of June, making it the best-selling bond fund in Europe during the first half of 2023, according to Morningstar data.