Can't speak for Euro bonds but for the UK and USA, the government bond bear market finished in 1981 following the 70s inflationary period.
Government bonds then went on a crazy, crazy bull market for 29 years to today!
Yields were 15% or so in 1981. They are now 1/6 of what they were.
IMO we are in the blow out, speculative phase. Is there any negative news on bonds at present in the daily press? Not from what I can see.
Joe public loves bonds. This is the time to be questioning the future long term course of the bond market. When everyone is in, its time to get out, or start thinking of doing so.
As for holding German bonds should Ireland pull out of the Euro, if the preverbial hits the fan then countries are going to put in place tight capital controls. Will it be possible to get easy access to foreign ownership?
I think this is a big potential risk in the future. Governments have a nasty habit of theft from their hard working savers when things go pete tong.
Argentina - nationalised pensions. US - Gold illegal, etc, etc.
Personally I want to hold my assets in safe havens - HK, Singapore, NZ, Aus if this occurs. Not Europe and certainly not the US!