Citi: The yield spread on Eurozone bonds is expected to narrow by the end of the year.

Jin10 data reported on June 30, Citigroup interest rate strategists stated in a report that the Eurozone government bond yield spreads have remained resilient amid recent geopolitical tensions, and are expected to narrow further in the coming months. They said: “Although risks remain ahead of the upcoming July 9 tariff deadline, we maintain a positive outlook and expect the majority of the UK-Germany bond spreads to tighten by the end of the year.” Citigroup strategists expect the 10-year Spanish-German bond yield spread to narrow from the current 64 basis points to 50 basis points. They also expect the 10-year Italian government bond yield spread to narrow from 89 basis points to 75 basis points. They stated: “This view is supported by the fiscal stimulus plan announced by Germany last week.”