Xin Hua Cai Jing·2026-02-25 13:45Group 1 - Traders are betting that the Federal Reserve will continue to lower interest rates next year rather than raise them, as indicated by the significant inversion in the SOFR futures spread, reflecting a shift in expectations regarding the central bank's monetary policy [1] - German commercial bank analysts suggest that geopolitical concerns, tariff uncertainties, and favorable capital flow patterns will continue to support German and other Eurozone sovereign bonds, with the German 10-year bond yield testing below 2.7% [1] - The European rate market is approaching excessive expansion levels, driven by risk-averse sentiment in the stock market and geopolitical uncertainties surrounding Iran, which are supporting the safe-haven value of bonds [2] Group 2 - Analysts believe that the strength of the Thai baht may have influenced the Bank of Thailand's unexpected decision to cut interest rates, with the baht appreciating by 1.8% this year [2] - There are ongoing uncertainties regarding the Bank of Japan's interest rate hike path, with the yen continuing to consolidate against other G10 and Asian currencies amid concerns expressed by the Japanese Prime Minister regarding further rate increases [2] - Australia's inflation rate exceeding targets may necessitate further tightening of policies by the Reserve Bank of Australia [2]