Goldman Sachs Adjusts Bund Yield Expectations

In a recent analysis, Goldman Sachs strategists George Cole and Williams Mashal have updated their forecast for the 10-year German Bund yield, signaling a cautious outlook on the Eurozone's economic growth.

Key Insights: The European Central Bank may grapple with inflationary pressures, yet anticipated fiscal expansion across the Eurozone is expected to mitigate these challenges.

"Anticipated fiscal loosening is likely to stabilize Bund yields around current levels—prompting us to adjust our end-2025 10-year Bund forecast down to 2.80% from 3.00%," the strategists noted. As of 8:47 am CET, the 10-year Bund yield slightly decreased by two basis points to 2.681%.