MARKET OUTLOOK - Germany's 10-year bond yield is expected to settle at 3%.

Elmar Voelker from LBBW stated that long-term interest rates in the Eurozone are caught between the strong upward pressure seen recently in yield spreads and the European Central Bank's expectations for further moderate interest rate cuts.

LBBW predicts that sooner or later, the increase in yield spreads will lead to a rise in demand for long-term bonds, expecting the 10-year Bund yield to settle around 3% by the end of June 2026, while it is currently trading at 2.886%.