Bond yields are rising everywhere. It’s like a contagion. It began in Greece, a Balkan land, the kind of place that started World War I. Then it spread to all the pigs: Ireland, Portugal, and Spain. Finally it affected Italy and even France.
The most recent out of control development is that it is irrationally affecting the bond yields of countries who have sterling balance sheets such as the Netherlands, Austria, and Finland. Every last member of the Euro Zone has been adversely affected except one. That one is Germany.
As investors flee everything else they pour their money into what they consider to be two safe havens: the U.S. treasury bond and the German bund. In England they buy gilts.
The more things change, the more they remain the same.