Barclays rates strategists say euro-area interest rates remain locked in an
"endless cycle of hope and fear" after German Bunds endured their worst July in
more than 20 years. Ten-year German Bund yield is 3.15%, on the cheaper end of
the range; Barclays warns that while lower yields could ease post-summer supply
absorption, front-end rates and global factors still dominate. The bank adds
tariff swings will be a key feature in 2025, with open conflict and ceasefire
dynamics shaping 2026, and that the Middle East conflict continues to affect
growth, inflation and monetary policy outlooks.
