German, Italian Bond Yields Drop on Weak Growth and Dovish Central Banks
• German 10-year bond yield drops to 9-month low of 2.019% on weak economic data and dovish Fed • Money markets price in 155bps of ECB rate cuts by end of 2024 and see 85% chance of cut in March • ECB pushes back against imminent rate cuts; analysts expect first cut in June • Italy's 10-year yield hits fresh 11-month low of 3.7% • Gradual PEPP reinvestment phase-out supports bonds of highly indebted countries