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Little upside risks for Bund yields from US tariff threat

National inflation data for November released today suggest that euro-zone inflation has edged up this month, but we think this is just a blip. We still expect inflation to drop below target next year and the ECB to cut interest rates by more than investors anticipate, so we forecast Bund yields to edge down. President Trump’s proposed tariffs pose a small upside risk to this forecast.

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