“Interestingly, there was a new paragraph in the initial statement detailing factors that may weigh on the growth outlook, namely trade tensions. This added a dovish flavour to the tone of the statement, which was reinforced in the press conference, that helped support Bund yields lower. Indeed the “deterioration” in the growth outlook is a justified concern in our view as is operating in an environment of elevated uncertainty. The ECB effectively now stands ready and agile given this prevailing environment. As such, core European yields can and will likely remain supported by such factors, with a medium-term ongoing steepening bias in our view. Bunds should also continue to have appeal from their haven status in times of market volatility.”