According to Jinshi Data, interest rate strategists at Citi Research said that they had originally predicted that the 10-year German government bond yield would reach 2.25% in the fourth quarter of 2024, but the yield has reached this level ahead of schedule.

Citi Research believes that although the market may reassess and adjust the excessive pricing of rate cuts in the remainder of 2024, the market will ultimately price in more rate cuts in 2025.

Citi Research is keeping a neutral view on 10-year German government bond yields through the end of the year.