Weidmann sees bond reversal as ‘a kind of re-normalisation’
Bundesbank president argues sell-off is a ‘correction of market overshooting’
The rise in German government bond yields during the past two months is "a kind of re-normalisation" after the "exuberance" that followed the start of the European Central Bank (ECB) quantitative easing (QE) programme, according to Deutsche Bundesbank president Jens Weidmann.
"To understand the underlying decline in bond prices, which was dubbed the ‘Bund tantrum' because German Bunds were at the epicentre of the mini-crash, one has to bear in mind the preceding rally," he said in London today
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