Has the bond party come to an abrupt end?

05-May (CNBC) — European government bond yields, which have been on a steady downward trend for years, are suddenly trading at their highest levels in more than two months – and analysts expect this move higher to continue.

The yield on Germany’s 10-year Bund, the benchmark in Europe, was trading at 0.43 percent on Monday. It has soared from a record low of 0.05 percent just last month, as investors reassess bullish bets on government bonds in Europe and the U.S., where debt yields have also risen sharply.

…”There are technical reasons for this, but also fundamental reasons, such as more supply coming into the market in May and June, tentative signs of a recovery in Europe and a U.S. Federal Reserve that is looking to normalize rates this year.”

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