GEOPOLITICS | German Bonds Supported Amid Geopolitical Concerns

German bonds and other Eurozone sovereign bonds are expected to remain well-supported due to geopolitical concerns, tariff uncertainties, and favorable capital flow patterns, according to Commerzbank interest rate strategist Rainer Guntermann. According to Jin10, despite ongoing tariff uncertainties, U.S. President Donald Trump's recent statements indicate his continued commitment to maintaining broad tariffs under different legal frameworks. Currently, the yield on Germany's 10-year government bonds is tentatively dipping below 2.7%, while the yield spreads between Eurozone government bonds and German bonds remain within a narrow range. The German Finance Agency plans to auction a total of 2 billion euros in bonds maturing in May 2038 and May 2041 later this month.