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A New Era of Short Bets Against German Bonds Is Beginning

  • German benchmark yields are rising toward positive territory
  • A break above 0% could dent stocks, corporate debt markets

There’s an unwritten rule in global bond markets: never short Germany.

But when Europe’s safest asset is in the midst of a retreat that threatens to push yields on bunds above 0% for the first time in more than two years, a paradigm shift may be underway.