Analysis considers that short-to-medium term bonds are more attractive than long-term bonds.

Mark Dowding, Chief Investment Officer of BlueBay Asset Management's fixed income division, stated in a report that with the expansionary fiscal policy, the prospects for long-term bonds may not be as clear as short-term bonds. He said, "As the 30-year German government bond yield reaches levels equivalent to early 2026, we believe it is more likely to generate returns in short and medium-term bonds." Data from the London Stock Exchange Group shows that the latest yield for 30-year German government bonds is 3.408%, down from 3.538% at the beginning of the year. Dowding suggested that in the context of weak economic activity highlighted by Eurozone purchasing managers' index data, "we are more inclined to believe that the ECB may have already ended its rate hike cycle." From this perspective, "we continue to find the 2.75% two-year swap price attractive."