At the beginning of 2015, eurozone bonds were in their element. Quantitative easing from the European Central Bank and suggestions that economic conditions may finally be improving chased yields down to record lows. By May, however, the situation had changed dramatically. Greece appeared to be heading for an exit from the eurozone and markets became increasingly volatile.
Bonds from peripheral countries were most affected but even Germany, the strongman of Europe, saw yields rising. In April 2015, for example, 30-year bonds issued by Germany were yielding less than 0.5% – their lowest ever. By early June, they were hovering around the 1.5% mark.
