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The awesome German bunds rally, explained: Fasdal

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Simon Fasdal, head of fixed income trading at Saxo Bank, explains why asset managers and funds are buying 10-year German bunds at an all-time low of 4.8 basis points.

He says they are forced to take measures that could potentially preserve capital in the event of an all-out risk off, in the case of a Brexit. This together with other factors, like ECB QE buying, have pushed bunds higher and yields lower.

However, other risk factors that have fuelled the bund rally beginning of this year have now stabilised.