German bunds climb after Eurozone’s April consumer price inflation disappoints market participants

The German bunds climbed Thursday after the eurozone’s consumer price inflation index for the month of April disappointed market participants, missing consensus estimates as well as the prior reading.

The German 10-year bond yields, which move inversely to its price, slumped nearly 2 basis points to 0.56 percent, the yield on 30-year note remained tad lower at 1.24 percent and the yield on short-term 2-year traded nearly steady at -0.56 percent by 09:55GMT.

Euro area annual inflation is expected to be 1.2 percent in April 2018, down from 1.3 percent in March 2018, according to a flash estimate from Eurostat, the statistical office of the European Union.

Looking at the main components of euro area inflation, energy (2.5 percent, compared with 2.0 percent in March) and food, alcohol & tobacco (2.5 percent, compared with 2.1 percent in March) are expected to have the highest annual rate in April, followed by services (1.0 percent, compared with 1.5 percent in March) and non-energy industrial goods (0.3 percent, compared with 0.2 percent in March). 

Meanwhile, the German DAX traded 0.26 percent lower at 12,769.31 by 09:55GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bearish at -101.22 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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