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Bernanke Bond Spread Most Since 2007 Shows Decoupling
Jan. 11 (Bloomberg) -- The correlation between Treasuries and German bunds that has prevailed since credit markets started freezing in 2007 is breaking down as U.S. economic growth leaves Europe behind. Yields on U.S. 10-year Treasury notes rose twice as fast as German debt with a similar maturity since the start of December, according to data compiled by Bloomberg. The bonds had traded almost in tandem since April 2007 as investors sought a refuge from the first global recession in six decades and then shifted to higher-yielding assets in 2009.