It almost looked as if the euro debt crisis was back front and center. Greek 10-year bond yields on Wednesday saw their biggest rise in more than eight months, while German debt was in high demand, just as it was during the single currency’s crisis back in 2012.
But the deja vu stopped there, analysts said. The steep declines in Germany’s bellwether DAX Index, which has fallen nearly 4 percent since Wednesday, is a reflection of weaker global growth, the Ebola epidemic, the Ukraine conflict and renewed worries about the recovery of Greece.
“There is a general uncertainty that is being pushed by political crises such as in Ukraine or with the Islamic State,“ said Timo Klein, a senior European economist with IHS Global in Frankfurt in an interview with Handelsblatt Global Edition. “The reason for the spread between German and Greek bonds is not due to a deterioration in euro zone countries but a general mood swing on the market.”