JPMorgan strategists say the latest bond sell-off reflects
stronger-than-expected September PMI readings, especially in the Eurozone and
the US, and heightened sensitivity to energy headlines. They add that noise
around potential US diesel export restrictions has added uncertainty. JPMorgan
advises being duration-neutral on German bunds near term, but says mid-dated
German bund yields remain attractive for long-term investors able to bear
short-term volatility.