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Deutsche Bank: Geopolitical and Tariff Uncertainties Boost Safe-Haven Demand; Eurozone Government Bonds Expected to See Strong Support
In a report, Rainer Guntermann, an interest rate strategist at Commerzbank, noted that German government bonds and other eurozone sovereign bonds should continue to be strongly supported by a combination of geopolitical concerns, tariff uncertainty, and favorable capital flow patterns.Although tariff uncertainty persists, Donald Trump’s latest remarks further indicate that he remains committed to finding ways to maintain broad tariffs under different legal bases.Currently, the yield on the German 10-year government bond is tentatively dipping below 2.7%, while the spread between eurozone government bonds and German bonds remains within a very narrow range.The German Federal Financial Supervisory Authority will auction a total of €2 billion in government bonds maturing in May 2038 and May 2041 this month.
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