Bank of France: The yield on Germany's 10-year government bonds is expected to remain above 3% this year.

The interest rate strategist at France's Societe Generale Bank stated in a report that due to the resilience of the country's economy, the European Central Bank is expected to raise interest rates twice this year, in June and September, which will keep the yield on 10-year German government bonds above 3%. They said, "German government bond yields are hovering around 3%, but are still inclined to rise." They mentioned that the ceasefire and cooling tensions in the Middle East should bring relative stability to the front end of the euro yield curve, and the ECB's terminal rate expectations will remain stable at around 2.50%. These strategists advocate for a "cautious and tactical" approach. If German government bond yields rise and push below 2.90%, it may "provide an opportunity to go short duration, [we] still target a 3.20% yield on German government bonds in the second quarter." According to Tradeweb data, the 10-year German government bond yield closed at 3.012% on Thursday.