German bonds sold off sharply in early March, when the government announced plans to unlock hundreds of billions of euros for defense and infrastructure investments. The 10-year yield surged 50 basis points in a matter of days as investors prepared for more debt issuance in coming years to fund the increased spending.
Japanese investors sold the largest amount of German government bonds in a decade in April as the securities rebounded from a selloff the previous month spurred by fiscal concerns.
Net sales totaled JPY1.48 trillion ($13.2 billion), the most since 2014, the latest balance-of-payments data from the Asian nation’s Ministry of Finance (MoF) showed on Monday. That was also the largest among the 12 sovereign bond markets tracked by the ministry, referring to debt securities issued by governments, their agencies and local authorities.
