European Bond Market Showcases Fears of Contagion

Traders in Europe's government bond market are on high alert for signs of contagion after a recent selloff reminiscent of the region's debt crisis from 15 years ago.

The bonds of euro-area members have largely retreated in lockstep this year, driven by an energy shock that has fueled inflation fears and prompted the European Central Bank to hike interest rates.

France was the clear underperformer, with budget squabbling and a contentious election exacerbating global headwinds.