Investors Anticipate Further ECB Rate Cuts as Bond Market Activity Surges
Investor sentiment remains positive in the bond market as expectations grow for another interest rate cut from the European Central Bank (ECB) by year-end. This outlook is bolstered by comments from European central bank officials, including Olli Rehn from the Bank of Finland, predicting that deposit rates may reach a neutral level between 2.2% and 2.8% by mid-next year. The ECB has already lowered rates three times this year, contributing to increased trade activity in the domestic bond market, where transactions reached €64 million today.