0621 GMT - A further increase in market expectations of European Central Bank rate hikes in the coming weeks would only partially spill over into longer tenors, resulting in a continued flattening of the German government bond yield curve, SEB's Jussi Hiljanen says in a note. "A downside in long‑end yields should emerge once inflation repricing has been nearly completed, with market focus shifting to longer‑term growth and monetary‑policy implications," the chief rates strategist says. At this point, that vantage point has not yet been reached, he says. The 10-year German Bund yield will likely be trading in the 3.00-3.20% range, before potentially turning lower once negative growth implications become a dominant driver, he says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
March 20, 2026 02:21 ET (06:21 GMT)
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