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Can Europe's Economy Handle Russian Sanctions? | Frances Coppola

Forward Guidance

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The Rise in European Yields

The German 30-year bond yield is now in positive territory. Shouldn't the bond market, if its recession is coming, shouldn't it snuff that out by having yields fall? I would have thought that yields are rising because of inflation impressions. There's also political risk and they might also be rising because of that. It could well be that in a specific case of Germany, the yields are rising simply because of the increased political and economic risk caused by Ukraine.

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