According to analysts from Danske Bank, the yield on the 10-year German bond is set to remain close to zero through 2019.
Key Quotes:
“Multiple uncertainties, coupled with a visible weakening of the economy in 2019 and the latest announcements from the ECB, lead us to expect no noticeable increases in 10Y Bund yields over the coming 12 months.”
“We therefore expect the benchmark Bund yield to trade in a narrow range between -0.1% and 0.25% throughout 2019. Where precisely it would trade within that range will mainly depend on risk appetite. We would also stress that our economists no longer expect the Fed to hike interest rates in 2019. The Fed announced very clearly in March that it would be putting rate hikes on hold for the rest of 2019.
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