German bonds remain steady ahead of Eurogroup meeting, Eurozone’s August CPI

The German government bonds traded flat Friday as investors wait to watch the Eurogroup meeting, scheduled to be held later today, besides, the common currency bloc’s consumer price-led inflation index for the month of August, due on September 18 by 09:00GMT.

The German 10-year bond yields, which moves inversely to its price, hovered around 0.41 percent, the yield on 30-year note flat at 1.21 percent and the yield on short-term 2-year traded 1 basis point lower at -0.71 percent by 07:30GMT.

Today also brings euro area labour cost data for Q2. A rise in the growth rate of average employee compensation in Q2 to 1.9 percent y/y, the highest in more than five years, suggests that labour cost growth might also have taken an encouraging step up. The July euro area goods trade report will also be published, with any adverse impact of recent euro strength unlikely to discernible.

Ahead of the release of the final August CPI figures for the euro area on Monday, the equivalent French numbers released Thursday confirmed the 0.2ppt rise in the EU harmonised measure to a four-month high of 1.0 percent y/y, with core inflation on the national measure stable at 0.5 percent y/y.

Meanwhile, the German DAX traded flat at 12,537.75 by 07:35 GMT, while at 07:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 15.38 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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