Vanguard and Goldman Sachs Group Inc. are among the firms betting that German government bonds faring better than US Treasury debt is a theme that has further to go.
A proxy for the trend — the margin by which the US 10-year yield exceeds Germany’s — has increased to about 1.9 percentage point from this year’s low of about 1.5 percentage point in mid-September, when the Federal Reserve cut US interest rates by a bigger-than-anticipated half point. Since then, the US rate has climbed roughly 60 basis points to about 4.20%, while Germany’s is only around 20 basis points higher.
