Analysis: Germany's 10-Year Government Bond Yield Expected to Remain Stable for the Rest of This Quarter

Citi Bank's forecast indicates that Germany's 10-year government bond yield is expected to close the first quarter at a level close to the current rate, but may rise slightly by year-end. Interest rate strategist Jamie Searle stated: "We see no reason to adjust our forecast of a 2.75% yield for German government bonds by the first quarter of 2026, and currently, the yield is gradually approaching this level." He pointed out that although bond issuance is a key driver of valuations in the short term, "in the long run, the main influences come from fiscal and economic factors rather than issuance itself, but this will limit the upside for yields." Citi maintains its year-end target prediction for Germany's 10-year government bond yield at 3%. According to London Stock Exchange Group data, Germany's 10-year government bond yield closed at 2.763% on Thursday.

Editor: He Yun