1034 GMT - TD Securities recommends investors buy German 10-year Bunds at around current levels, targeting a decline in yields towards 2.50%. It places a stop-loss level on the trade--which it entered at a yield of 2.84%--at 3.04%, says senior rates strategist Pooja Kumra. The expected time horizon of the trade is two to three weeks, she says. "Longer-term dynamics for European rates have entered a new regime," she says. "But a significant growth-led repricing still needs more evidence." The trade idea follows Germany's historically large-scale spending program which prompted a surge in Bund yields. The 10-year Bund yield last trades 7.3 basis points lower at 2.824%, according to Tradeweb. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
March 07, 2025 05:34 ET (10:34 GMT)
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