Part 2/8:
In recent weeks, Europe has witnessed a seismic shift in its financial outlook. The German bond market has experienced one of its most significant downturns since the fall of the Berlin Wall, with yields approaching 3%. This decline has sparked investor skepticism towards the German government’s fiscal responsibility, leading many to demand higher returns to hedge against perceived risks. As a region accustomed to low interest rates, this transformation poses a dire threat to the overall stability of the European economy.