UBS lowers 10-year German Bund target amid tariff concerns

Published 02/04/2025, 12:40
UBS lowers 10-year German Bund target amid tariff concerns

Investing.com -- UBS Global Research has revised its target for the long 10-year German Bund, lowering it to 2.60% from the previous 2.70%.

The adjustment comes as the balance of risks indicates a potential drop in Bund yields, particularly if U.S. tariffs on European Union imports exceed 10%. This insight was shared by Reinout De Bock, a strategist at UBS Global Research, in a recent note.

Alongside the target adjustment, UBS also reduced the stop-loss level for the 10-year Bund from 3.05% to 2.80%. The Swiss multinational investment bank had taken a long position in 10-year Bunds on March 14, entering at a yield level of 2.90%.

At the time, UBS believed that the risk associated with tariffs was not adequately reflected in the price.

German Bund yields are currently leading a decline among 10-year eurozone bond yields.

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