SEB chief strategist Jussi Hiljanen said in a note the rally in German government bonds may be near its end after the 10-year bund yield fell to about a multi-month low of 2.85%. He said a sustained move below 2.80% would require a clear dovish shift in the ECB policy outlook, which he judges premature. SEB expects the 10-year bund yield to recover to 2.90–3.00% ahead of the ECB meeting on July 23. Hiljanen added the longer-term trajectory will largely depend on whether markets begin to price fu

SEB chief strategist Jussi Hiljanen said in a note the rally in German government bonds may be near its end after the 10-year bund yield fell to about a multi-month low of 2.85%. He said a sustained move below 2.80% would require a clear dovish shift in the ECB policy outlook, which he judges premature. SEB expects the 10-year bund yield to recover to 2.90–3.00% ahead of the ECB meeting on July 23. Hiljanen added the longer-term trajectory will largely depend on whether markets begin to price further policy-rate cuts in 2027.