0556 GMT - German government bond yields reached the lower bound of SEB's targets it had set on March 3 for an "extended conflict" scenario in the Middle East. "We think the risk of a significant further selloff is declining," SEB's Jussi Hiljanen and Filip Carlsson say in a note. In SEB's "extended conflict" scenario of several months, which assumed Brent crude at around $100 per barrel, it set the German 10-year Bund yield at 3.00%-3.20% and the two-year Schatz yield at 2.70%-2.80%, and envisaged markets discounting 50 to 75 basis points of European Central Bank rate hikes this year. "The short-end repricing was largely completed, with 75-80bp of rate hikes priced in before the ceasefire announcement, and two-year and 10-year yields moved into our target range." (emese.bartha@wsj.com)
(END) Dow Jones Newswires
April 15, 2026 01:56 ET (05:56 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.

