According to Jinshi, Jussi Hiljanin, chief strategist for euro and dollar rates at SEB Research, said that unless there is a recession and the European Central Bank cuts interest rates significantly, long-term government bond yields in the euro area are unlikely to continue to fall from current levels.
He believes that at present, both a recession and a major adjustment in market expectations seem unlikely.
Therefore, SEB Research expects the 10-year German government bond yield to continue to fluctuate in the range of 2.10%-2.30% in the autumn, and any drop below this range should be temporary.