Report: Premature expectations of a rate hike by the European Central Bank may create opportunities for short-term bonds.

Harry Jones of Insight Investment stated in a report that the market's eagerness to reflect expectations of a rate hike by the European Central Bank this year is incorrect, creating trading opportunities in the Eurozone bond market. Insight Investment believes that the European Central Bank is more likely to maintain the deposit rate at 2% until the end of 2026, and the first rate hike is likely to come in late 2027. The fund manager said, "Although this is not our core scenario, if necessary, the European Central Bank also has room for further interest rate cuts." However, he noted that the scale of German fiscal stimulus should raise the threshold for interest rate cuts, thereby keeping interest rates unchanged by the European Central Bank. "We will continue to closely monitor the short end of the Euro yield curve to take advantage of these opportunities when they arise."