📝 Lifting 10-Year Bund Yield Forecast to 0.60% From 0.50%: ABN Amro

German Bund yields have reached their peak for now, revising year-end forecast for the 10-year Bund yield to 0.60% from 0.50%. The reason for the forecast revision is that the correlation between the 10-year U.S. Treasury and German Bund yields seems to be higher than initially thought. We expect the 10-year Bund yield to move sideways from current levels with spikes in between. Downward impact on yields as investors scale back current expectations for multiple interest-rate rises by the European Central Bank wall be offset by the upward impact of spillovers from the U.S. bond yields. - ABN Amro