Bundesbank remarks in its latest monthly report
- But economic hit from virus curbs to be less severe than in Q2
- Stabilising fiscal policy remains important next year
- Government has enough scope to significantly expand public stabilisation if needed
- It remains a challenge to calibrate measures to address health crisis while disrupting the economy as little as possible
Some token remarks there by the German central bank, as this is very much anticipated as we gauge the Q4 outlook for the euro area economy as a whole as well.
If the tighter restrictions are extended beyond the end of this month, expect that to weigh more on the economic outlook and that should very well keep bunds underpinned.
10-year bund yields are slowly tracking back lower now after having gotten a shot in the arm from the Pfizer vaccine news at the start of last week:
