Gadfly
Merkel's Drama Is Merely a Flap for Germany's Bond Market
German bonds can only flutter at the collapse of Merkel's coalition talks.
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Political turmoil normally drives investors towards the haven of top-grade government bonds. The collapse of Chancellor Angela Merkel's coalition talks on Sunday seems to have confounded investors. Yields can't make up their minds, fluctuating from up to little changed to down and back on Monday.
Don't be distracted by the political drama. It's far from the biggest factor behind German yields. That accolade goes to the European Central Bank.