"Just a few weeks ago I wrote how the lack of true sovereignty in Europe meant that none of the currency users were “risk free” bond issuers. That is, there’s a very real default risk for all of these nations. They can all “run out” of Euro. I wrote:
“So, not to belabor the point, but I feel that 10 year German Bunds are an absolutely atrocious deal at 1.78%. This doesn’t mean the risk of default is on the table, but the simple fact that default is a risk at all makes these bonds infinitely more risky than, for instance, a US 10 year note at 2.05%. In sum, the term “safe haven” in Europe appears to be a bit of a misnomer in my opinion. Nothing is safe as long as this wretched monetary system continues to exist in its current format.”at http://pragcap.com/now-there-are-truly-no-safe-havens-in-european-bond-markets
