Safety bids on German Bunds set to continue

06:22 GMT – The underlying rush into safe-haven German Bunds is unlikely to reverse, but further flattening of the curve should be limited, Rainer Guntermann, rates strategist at Commerzbank Research, said in a note. “It is unlikely that the security attempt underlying the Bunds will be reversed with Israel’s imminent ground offensive in Gaza, in a context of risks of entry into war by Hezbollah or even Iran and the United States,” he said. Various European Central Bank speakers, from the dove-hawk spectrum, line up Monday and Tuesday, but “they are unlikely to take a new tone on policy direction and will probably stick to their prejudices respective,” he said. Eurozone 10-year government bond yields are trading slightly higher, with the Bund yield up 2.5 basis points at 2.769%, according to Tradeweb. (emese.bartha@wsj.com)