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Saft Says: Pay Close Attention to German Bund Yields

Wednesday, June 13, 2012 - 01:53

June 13 - Reuters Columnist James Saft says the recent sell-off of German bunds could be seen either as a positive development or a dangerous warning sign.

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I'm -- staff writers call. The most interesting development. In capital markets maybe in months. And recent sell off in German. Throughout the European crisis the pattern has been since when things go wrong elsewhere German bombs were reflecting capital flight. And conviction among investors in Germany is a -- It looks like that might be changing. This is I have really good news whoa really that. It's good the good news possibly worse. It might reflect the idea that Germany is an -- armed and willing. Lumbered with a huge amount -- -- under -- essentially -- your banking system and it's he can Euro -- our arts. That's going to be that he's from German bond holders and glory is interesting is an award to Europe or. Which would be disastrous for the global economy and this possibility is still extremely close to the good news. Internet selloff in German bonds might reflect the idea. Germany banks are going to be weakened by losses hardly in and finished yet. And that they're going to need a large bailout from -- car. Is well if you're worried about your great. You probably wanna consider selling German bonds because frankly -- -- you're an economy. Her tax revenues and ultimately may even Germany or worse. It's impossible to say which one is going to play now. But. When a safe haven suddenly finds itself shown in a crisis like this. It's important to pay close attention.

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Saft Says: Pay Close Attention to German Bund Yields

Wednesday, June 13, 2012 - 01:53