German benchmark Bund yield is set for its first weekly drop since early August
after traders on Monday priced the ECB deposit rate at roughly 3.5% by end-2027
and then pared ECB rate-hike bets. Policy-sensitive German 2-year Bund yield is
poised for a sixth consecutive weekly rise. Some analysts say Fed rate-hike
expectations are overdone and that rising energy prices could drag on growth and
help curb inflation and monetary-tightening expectations. French 10-year bond
yield rose 0.5bp to 4.45% after touching 4.5531% on Tuesday, its highest since
Sept 2008; the spread to German Bunds was 96.50bp after hitting 98.15bp on
Tuesday, its widest since July 2012.