Germany's 10-Year Bund Yield Falls to 2.85%, Further Decline Limited Without ECB Dovish Shift

According to SEB chief strategist Jussi Hiljanen, Germany's 10-year Bund yield has fallen to 2.85%, a multi-month low as of June 26. Hiljanen stated that for yields to sustain a break below 2.80%, a notably more dovish European Central Bank policy outlook would be required, noting such a scenario remains premature. SEB projects the 10-year yield will rebound to the 2.90% to 3.00% range ahead of the ECB's July 23 meeting.
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