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Eurozone bond market faces key risk from 2027 budget talks

Societe Generale rates strategists say the coming 2027 budget negotiations are a key risk across the eurozone government bond universe, potentially refocusing investor attention on fiscal consolidation.

The coming 2027 budget negotiations will be a key risk across the eurozone government bond [EGB] universe, potentially refocusing investor attention on fiscal consolidation challenges, Societe Generale rates strategists say in a note. "We therefore continue to favor the front end of EGB curves, whe…