Weekly Investment Focus

▪ Considered as «the» benchmark in European markets, the German 10-year Bund recently reached 0.05%
▪ Its yield is expected to go into negative territory in the coming months, likely to reach -0.5%
▪ Despite this main scenario, there is a high risk in holding German sovereign bonds
▪ The risk/return ratio is not attractive: if rates rise by 100 basis points, bond holders can lose as much as 7.7%

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