German government bonds rallied on Monday after the German election showcased a surprising rise in support for an anti-immigrant party, highlighting waning support for the regions most established parties and reigniting fresh worries that the ascendance of anti-establishment factions would threaten the solidarity of Europe’s trading bloc.
The anti-immigration Alternative für Deutschland, or AfD, also known as Alternative for Germany, won 13% of the vote on Sunday, making them the third-largest political faction in parliament.
…Market participants believe that the German election may only be the first domino in a lineup of more substantial threats to the integrity of the eurozone. Catalonia, a province of Spain, plans to declare a referendum for its independence on Oct. 1 . . .