German bunds dive after reading higher-than-expected March manufacturing PMI

The German bunds dived on the last trading day of the week as investors booked-in profits after a long rally and following higher-than-expected manufacturing PMI for the month of March which remained crucial in determining the future direction of the bond market.

The yield on the benchmark 10-year bond, which moves inversely to its price, rose 1 basis point to 0.44 percent, the long-term 15-year bond yields also jumped 1-1/2 basis points to 0.61 percent and the yield on short-term 1-year bond also traded 4-1/2 basis points higher at -0.76 percent by 08:40 GMT.

The overall strength of business conditions in Germany’s manufacturing in particular was highlighted by the headline Markit Flash Germany Manufacturing PMI rising to a 71-month high of 58.3, while the Markit Flash Germany Composite Output Index rose for the second month running from 56.1 in February to 57.0, the highest since May 2011 and signalling marked economic growth in the eurozone’s largest economy.

Forward-looking data on output expectations strengthened further in March, with the Future Output Index hitting a new high since its inception in July 2012. In the service sector, the sentiment was the strongest in over six years.

Meanwhile, the German stock index DAX Index traded 0.15 percent higher at 11,920.00 by 09:10 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -19.91 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex