Citigroup: German bond yields may fluctuate within a range after short-term uncertainty.

In a report, Citigroup's Jamie Searle stated that the Middle East conflict has triggered a sharp sell-off in German government bonds, but that this sell-off "was bound to happen." The interest rate strategist expressed that aside from recent uncertainties, his broader view on the volatility range for German bonds remains unchanged. He expects the market to absorb this geopolitical shock, with the assumption that the macroeconomic impact of the conflict is more likely to be temporary rather than fundamental. Searle said, "Experience over the past few decades has also confirmed this, as the global economy has shown resilience to various shocks." According to data from the London Stock Exchange Group, the yield on the 10-year German government bond closed at 2.852% on Thursday.