Eurozone Government Bond Yields Likely Have Peaked

0550 GMT – ​Further interest-rate rises by the European Central Bank this year are unlikely to trigger another leg up in long-term eurozone government bond yields, Hubert de Barochez, markets economist at Capital Economics, says in a note.​ CE’s downbeat growth forecasts feed into their view that safe assets will fare better than risky ones over the remainder of 2023, he says. ​”​As such, we think that ‘core’ euro-zone government bond yields will end the year around their current levels, or slightly lower, even if the ECB continues to raise its policy rates​,” de Barochez says.​ CE forecasts the 10-year Bund yield to retreat to 2.25% from around 2.50%. (emese.bartha@wsj.com)