RBC Capital Markets says the tactical risk-reward for long European government
bonds has improved, although upside risk to energy prices remains. Analysts say
a tactical bond rebound is plausible whether energy prices spike further (e.g.,
geopolitical escalation) or reverse, but RBC remains structurally bearish: the
structural drivers supporting current yield levels are intact, and further
tactical repricing is possible as the resilience of economic activity to rising
rate‑hike expectations and elevated yields is uncertain.
