Goldman Sachs Adjusts Bund Yield Expectations

In a recent analysis, Goldman Sachs strategists George Cole and Williams Mashal have adjusted their forecast for the 10-year German Bund yield, citing concerns over slowing growth. The revision reflects a cautious outlook on the Eurozone's economic momentum.

ECB's Inflationary Challenges vs. Fiscal Expansion

While the European Central Bank (ECB) may grapple with inflationary pressures, the strategists highlight that planned fiscal expansions across the Eurozone could mitigate these effects. This balancing act is expected to stabilize Bund yields in the near term.

Revised Forecast Details

"Anticipated fiscal easing is likely to maintain Bund yields close to their current levels," the note stated. "Consequently, we have revised our end-2025 forecast for the 10-year Bund yield down to 2.80% from 3.00%." At 8:47 am CET, the yield was observed at 2.681%, marking a slight decrease of two basis points.