Germany's Bund safe-haven premium is fading

Germany appears to be losing part of its traditional safe-haven status in European bond markets.
The convenience yield on Bunds — the premium investors historically accepted to own German debt after hedging comparable bonds back into euros — has fallen to its lowest level in years.
That stands in contrast to Switzerland, where safe-haven demand remains stronger.
The shift suggests investors are no longer treating German government debt as uniquely scarce or defensive within Europe.
The broader implication is that ECB policy and changing fiscal conditions may be eroding one of the core advantages Bunds once enjoyed.