US Treasuries matter more for German Bunds than election result (for now), Saxo says

Until a government coalition is formed, German Bunds are more vulnerable to rising yields in the U.S. than the German election, says Steen Jakobsen, chief investment officer of Saxo Bank.

Eurozone government bond yields are trading higher, with the 10-year Bund yield up 3.5 basis points at -0.185%, according to Tradeweb.

Jakobsen says that 10-year Bund yields are trading in a fast area, which may take them quickly to -0.15%.

For now, he sees less of an impact from this past Sunday's election on Bund yields.

"Although the German election may represent a big change for the European sovereign space, it will not set direction until a governing coalition is formed," he says.

(emese.bartha@wsj.com)