Cristoph Rieger, Commerzbank strategist. says that the downgrade of the ECB's economic projections will not be the last. He also seeing 10-year German bond yields falling to 0.4% by the end of next year; lower from the previous forecast of 0.65%.

"Later this year, when the ECB needs to shift the forward guidance further into 2020, we thus expect it to implement a tiered rate mechanism, granting banks allowances for excess reserves that are not subject to the then still prevailing -0.40% depo rate." Rieger said.