Jussi Hiljanin, chief strategist for euro and dollar rates at SEB Research, has indicated that long-term government bond yields in the eurozone are unlikely to decrease further unless a recession occurs or the European Central Bank (ECB) makes significant interest rate cuts.

Hiljanin noted that, at this time, neither a recession nor substantial shifts in market expectations appear likely. As a result, SEB Research forecasts that the yield on 10-year German government bonds will remain within the range of 2.10% to 2.30% this fall, with any decline below this threshold expected to be temporary.