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Wednesday, 13 June 2012

2012.06.13 16:09:26 MARKET TALK: Capital Econ Sees Bunds Losing Safe-Haven Status

10:09 EDT - Capital Economics, while projecting 10-year German bunds
yielding 2.5% in 2013, says the 0.3-percentage-point jump so far this
month is the first clear sign that Germany's debt is losing its
safe-haven status. "The markets are starting to see bad news for the
periphery as bad news for Germany, too." As the euro-zone crisis
deepens, CapEcon sees a "one-way bet" for German debt since the
country will end up suffering outflows whether the bloc breaks up or
unifies further via fiscal integration. The 10-year bund was recently
yielding 1.46%. (cynthia.lin@dowjones.com)


(END) Dow Jones Newswires

June 13, 2012 10:09 ET (14:09 GMT)

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