German Government Bonds Have Worst Weekly Performance Since 1998

German government bonds capped their worst week since 1998.

Less than two months ago, Germany’s 10-year yield was on the verge of turning negative as European Central Bank buying pushed borrowing costs ever lower. Since then, yields have jumped in a selloff that continued this week amid nascent signs of inflation and European Central Bank President Mario Draghi’s perceived ambivalence toward the reversal. They stayed higher Friday after a report showed U.S. payrolls climbed in May by the most in five months.