According to Jinshi, Friedrich Mostboeck, head of research at Erste group research, expects the volatile sideways trend of medium- and long-term German government bonds to continue. The US guidelines may put temporary downward pressure on yields. On the other hand, the yields of short-term (German) bonds should continue to fall, as the market should increasingly reflect the impact of future interest rate cuts by the European Central Bank. An important uncertainty is the impact of the French election and how the future government will handle the national budget. The 10-year German government bond yield is currently 2.574%, up 2.5 basis points on the day.
