The investigation workforce at Danske Lender points out that although they continue to see further more upside for 10Y German Bund yields on a 12M horizon, they count on no key modifications in 2017 and this is also the situation for Swedish, Danish and Norwegian yields.
“We do not count on the market place to rate an ECB tapering quality ahead of 2018, as continued low inflation and a a bit considerably less robust expansion outlook are getting rid of the need to have for tighter ECB monetary policy. We also count on the ECB to prolong its order programme into 2018.”
“In the US market place, not only Fed hikes but also a possible improve in the Fed’s reinvestment policy will set the way for yields. We see a bit larger US yields on a 6-thirty day period horizon but again larger yields are generally a 2018 tale.”
“We count on the 10Y Bund produce to increase to .80% and a 10Y US Treasury produce of two.eight% on a 12-thirty day period horizon.”