There is some chatter about increased German bond issuance and the WSJ looks at the rise in yields to 1.578% from the record low of 1.12% on June 1.
The drivers of the decisions to sell differ. Some investors are concerned that Germany’s reputation as a borrower could be damaged by a costly rescue plan devised to end the debt crisis. Some just think that German yields have gone too low, and others simply prefer swapping German bonds for some that offer a higher yield, such as U.S. Treasurys
