Leading hedge fund managers are betting on a significant sell-off in German government bonds in the coming months after a sharp fall in yields on the debt paper driven by a flight to safety in the eurozone.

More than 50 percent of managers polled at an industry conference in Monaco on Tuesday said they expect Bund yields to double within a year.

Gavyn Davies, the founder of hedge fund Fulcrum Asset Management, told the Gaim conference that every hedge fund’s analytical model was signaling that the German bond market was too expensive.

He said Bund yields were being depressed by a big “capital flight” from other eurozone countries that was “one heck of a powerful force”. However, the former Goldman Sachs chief economist said this pressure would not continue to push down yields indefinitely.

Bund yields have dropped to all-time lows this year as investors look for safe haven assets in which to place their money. The 10-year Bund yield hit a low of 1.13 percent on June 1.

However the 10-year benchmark yield climbed 33 basis points to 1.53 percent on Tuesday, as investors have begun to expect a rescue for the wider eurozone that could weigh on Berlin’s creditworthiness.

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