Does rising credit risk pose a threat to Bunds?

The cost of insuring against a default by the German government for five years has nearly doubled since early July and now exceeds the cost of insuring against a default by the UK government for the first time since the financial crisis. So far, this soaring insurance premium has not been reflected in higher yields on Bunds, which have benefited from a dramatic reassessment of the prospects for monetary policy. But that could change over time.