Eurozone periphery bonds gain on safe-haven demand ahead of German 30-year auction

The Eurozone periphery bonds gained as investors poured into safe-haven assets ahead of the benchmark German 30-year auction, scheduled to be held on June 21. Also, the country’s manufacturing PMI for the month of June, due for release on June 23 will provide further direction in the money market.

The benchmark German 10-year bond yields, which moves inversely to its price, fell nearly 1-1/2 basis points to 0.26 percent, the French 10-year bond yields, slipped 1 basis point to 0.61 percent, Irish 10-year bond yield slumped 1-1/2 basis points to 0.66 percent, Italian equivalent plunged 2 basis points to 1.93 percent, Netherlands 10-year bonds yield traded 1-1/2 basis points lower at 0.47 percent, Portuguese equivalents also nose-dived hovered around 2.85 percent and the Spanish 10-year yields traded 2-1/2 basis points lower at 1.42 percent by 09:10 GMT.

The eurozone's current-account surplus narrowed in April as the surplus for both goods and services was slimmer than in the previous month, data from the European Central Bank showed Tuesday.

The current account balance stood at a surplus of EUR22.2 billion in April, following EUR35.7 billion in March. The balance is a rough measure of the gap between domestic savings and investment. The surplus in goods declined to EUR25.1 billion in April from EUR30.0 billion in March, while the surplus in services declined to EUR7.4 billion from EUR11.7 billion.

Meanwhile, the pan-European STOXX 600 index was up 0.20 percent at 392.73, German DAX rose 0.34 percent to 12,933.25, France’s CAC 40 climbed 0.44 percent to 5,333.50, and the PSI20 Index traded 0.21 percent higher at 5,341.92 by 09:30 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index stood neutral at -63.76 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex