Bond investors facing conundrum over Europe’s safest asset

The huge European Central Bank (ECB) asset purchases and a plan to jointly issue euro debt provides stability and a new challenger, something money managers haven’t had to deal with before.

BERLIN: The rally in German bonds in the past week has reminded fund managers why betting against Europe’s safest assets is a risky business.

The debt slid last month as economies showed signs of recovering from the ravages of the coronavirus epidemic, leading some analysts to predict yields would soon turn positive after a year below zero.