German Bonds’ Worst Run Since 2012 Makes Inflation Data Critical
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A rekindling of the inflation outlook that helped trigger German government bonds’ worst weekly run since 2012 faces scrutiny next week with the release of final data on euro-area consumer prices for April.
Bonds across the euro-area fell this week, extending a slump that wiped as much as 344 billion euros ($393 billion) off the market capitalization of the Bloomberg Eurozone Sovereign Bond Index. That’s after the securities surged in the first quarter, when the European Central Bank began its bond-buying plan to support waning price growth in the region.