, Columnist
The Bond Market's Great Elastic Band Act
German bond yields can't resist the pull of their U.S. counterparts forever.
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Yields on 10-year U.S. government bonds have risen 40 basis points since September, about as much as German 10-year Bunds yield in total. The more than 200 basis point difference between the two debt market bellwethers is increasingly difficult to justify.
It's the lack of yield in Europe that looks out of whack. Just like the U.S., growth is picking up here. Inflation and wage expansion doesn't look to be far behind, which is usually toxic for bonds.