German Bund Slump Sends Volatility Soaring to Highest Since 2012
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European bonds are experiencing the biggest price swings in almost three years as investors consider whether yields near record lows are justified given rising oil prices and a deadlock in Greece’s debt talks.
Implied volatility on 10-year German bund futures, the region’s benchmark debt, has surged in the past week to the highest since August 2012, data compiled by Bloomberg show. The gauge of price swings was pushed higher by a jump in bond yields since the start of May, which ended months of declines driven by the European Central Bank’s quantitative-easing program.