Dutch International: The rate of narrowing yield spreads for Eurozone government bonds is expected to slow down in the summer.

Benjamin Schroeder of the Dutch International Group stated in a report that the yield spread between Eurozone government bonds and German government bonds is still at historically narrow levels, but the potential for further narrowing in the short term is limited. The senior interest rate strategist said, "At these levels, the willingness to take a bullish position in anticipation of a narrowing of yield spreads will be limited as we enter the summer period, which typically has lower liquidity and higher volatility." Additionally, he noted that geopolitical and trade relationship uncertainties still exist and key dates are approaching.