German bunds sell off sharply

15 June 2015

 

German bunds sold off sharply last week in the face of new supply and a rosier economic picture. German 10y yields rose 3bps to 0.984%. Twice in the last week yields have approached 1%. ECB officials have so far mentioned that the rise in yields is to be expected, given the rebound in the euro area economic data. The sell-off pushed longer-dated US Treasury yields to their highest since September. The...

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