Given the recent economic development in both the US and EZ, with core inflation slowing down, labor market deteriorating, and intensification of financial tightening, an economic slowdown is on the cards.

Weaker economic activity is indeed likely to weigh on short term rate expectations which will push the 10Y yield lower in turn. 

Therefore, we judge that the market should reflect better this economic outlook once the higher-for-longer theme subsides and thus will be supportive of lower rates.