German five-year bond yields broke above zero percent for the first time since December 2015 after a member of the European Central Bank Governing Council said there isn’t a single reason anymore to continue with quantitative easing.
Yields rose across the euro area after Klaas Knot said Sunday that the program has done what could realistically be expected of it. Widely considered one of the safest assets to own, German bunds have sold off this year as the ECB is seen to be drawing closer to the first interest-rate increase since 2011. Weakness in U.S. Treasury futures weighed on sentiment, while investors are also positioning for euro-area inflation and GDP data this week, traders said.
