0635 GMT - Supply risks in Germany in 2025 seem contained, while bond issuance is set to surge in 2026, says Morgan Stanley Research's Lorenzo Testa and Maria Chiara Russo in a note. This should drive volatility in yields and asset swaps, the rates strategists say. Germany's future coalition partners and the Greens agreed on a planned fiscal package, paving the way for a rise in infrastructure investment and defense expenditures. Markets reacted to the fiscal plan with a huge selloff in eurozone debt, in particular in German bonds, but the strategists think the bulk of the selloff is over and duration should stabilize. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
March 17, 2025 02:35 ET (06:35 GMT)
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