German inflation and bonds yields should also decline

Talk in financial media says Germany has a stubbornly sticky inflation problem.

I see it has already ticked lower, as represented by the blue line in the chart below.

Currently, its 6.38% and I think it can converge lower towards its 200 week moving average to somewhere around the 4.60% mark (+/- 30 basis points)

Commensurately, German 2 year bond yields (orange line) should fall to the 1.60% (+/- 20 basis points) area.

July 26, 2023

by Rob Zdravevski

rob@karriasset.com.au