The yield on the 10-yr German bund yield rose to 0.54%; the highest level in 17 months. Bloomberg article says, “Bonds across Europe fell after the results of a French debt auction were published, which showed a drop in demand for French 30-year debt.”
But I believe it has got to do more with the realization that QE Taper is a more of a necessity/compulsion than the ECB’s desire. I talked about ‘QE Taper for Germany’ yesterday.
The ECB data showed, “the central bank fell short of its target for purchases of German bonds under its quantitative-easing program for a third straight month in June”
No wonder the yields are on the rise. The 10-year German yield awaits expanding channel breakout. When viewed on a monthly/weekly chart, this expanding channel (breakout) looks super bullish… ECB Taper is coming soon. Equities better get ready