Government bond yields have risen recently by more in Germany than in some “peripheral” countries of the euro-zone. This has happened even though the sell-off in bonds has been caused by concerns that the ECB will scale back its purchases, from which the weakest countries in the region have benefited. However, it is not clear that the purchases have boosted their government bonds any more than Bunds. And absent a sovereign crisis, credit spreads often tend to fall when economic conditions are improving.
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