Bond Market Favoring Obama as Euro Threatens Germany
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Germany is being penalized in the global bond market as European leaders fail to show investors they have a plan that will succeed in curing the region’s most- indebted economies.
Yields on 10-year bunds are poised to rise above comparable maturity U.S. Treasuries for the first time since June 2009 on concern Germany will assume a greater burden to support the European Monetary Union. The difference narrowed to as little as 7 basis points on Nov. 29, from 90 basis points in April as the 85 billion-euro ($114 billion) aid package for Ireland failed to stem concern that Europe’s debt crisis will broaden.