German 10-year yield could drop to 0.6% in Q4 – Citi

Omkar Godbole FXStreet Contributor

Citigroup Inc.'s analysts foresee German bond yields waking up from their third-quarter slumber and the 10-year yield's average falling to -0.6% in the October-December period, according to Bloomberg.

The benchmark yield averages -0.47% in the third quarter.

Key quotes (Source: Bloomberg)

Uncertainty over the November U.S. election and a resurgence of the coronavirus should spur haven buying of bunds, adding downward pressure on yields.

This quarter's German debt supply will be 60% less than the issuance seen in the April to September period.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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