According to reports from Jinshi Data, Citigroup interest rate strategists state that German government bond yields may soon find support. The year-end sell-off may be due to the Federal Reserve's expectation of only two rate cuts of 25 basis points in 2025, while the European Central Bank may reassess the magnitude of rate cuts.
At the same time, the market is making room for a large amount of government bonds issued in the Eurozone in January. Considering that higher direct yields have created space for supply, Citigroup doubts that most of the sell-off is likely over.
