Here's why the treasury drop is unlikely to spell doom for bunds

LONDON: Investors inclined to sell treasuries without batting an eyelid are unlikely to repeat the feat on German bunds.

While 10-year treasuries have had the worst start to a month since March last year, bunds haven’t exactly been rocked by volatility. German notes are being shielded by a host of factors, not the least of which are the European Central Bank’s (ECB) reluctance to raise borrowing costs, political risks looming large over Europe and a currency-adjusted yield that compares favorably with US bonds.