Traders Ramp Up Bets on Europe Bond Selloff
- Bunds face pressure from sticky inflation, record debt sales
- Goldman, BNP Paribas see 10-year German yields rising to 2.75%
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A rally in Europe’s debt is showing signs of faltering as the European Central Bank’s plans to shrink its bond holdings risks burdening a market grappling with record supply and sticky inflation.
Signs of unease among investors are growing, with options wagers on a selloff in German bunds — meant to be the continent’s safest asset — tripling over the last two weeks. German and Italian 10-year bonds fell in the past week for the first time in a month, sending yields rebounding from three-month lows.