German bunds decline on higher risk appetite, investors eye Q4 GDP

The German government bunds slumped Thursday as investors moved away from safe-haven instruments on higher risk appetite in crude oil and equities. Also, investors are eyeing the release of fourth quarter gross domestic product (GDP), scheduled to be released on January 30.

The yield on the benchmark 10-year bond, which moves inversely to its price, rose 1-1/2 basis points to 0.48 percent, the long-term 30-year bond yields also edged higher by 1/2 basis point to 1.23 percent and the yield on short-term 2-year bond traded 1 basis point higher at -0.62 percent by 09:10 GMT.

Further, the mood among German consumers improved further heading into February to reach its highest in five months. The consumer sentiment indicator, rose to 10.2 from 9.9 in the previous month, data released by the Nuremberg-based GfK institute showed Thursday.

Lastly, the German bunds have been closely following developments in oil markets because of their impact on inflation expectations. Crude oil prices recovered in afternoon session on speculations of some planned output cuts agreed by OPEC and non-OPEC producers.

The International benchmark Brent futures moved higher 0.91 percent to USD55.59 and West Texas Intermediate (WTI) rose 0.80 percent to USD55.59 by 9:20 GMT.

Meanwhile, the German stock index DAX Index traded 0.49 percent higher at 11,864.75 by 09:30 GMT, while at 9:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 1.07 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex