Optimism Underpins Bund Bulls, But Little Else Supports Them
- Slowdown in emerging markets may help push Bund yields lower
- Annual inflation in the euro area and U.S. may have peaked
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Bund bulls may need a miracle if yields are to set new lows for the year.
It may require the unlikely event of the European Central Bank pulling back on plans to end stimulus measures to give further impetus to German 10-year yields hovering close to the lowest level in three months. That’s the view of Carsten Klude, chief economist at M.M. Warburg. Bunds rallied last week as turmoil in Turkey prompted investors to seek the euro region’s benchmark sovereign securities.