German bunds fall after ZEW economic sentiment index beats expectations in February

The German bunds fell Tuesday after the country’s ZEW economic sentiment index for the month of February beat market expectations; however, the downside was limited as investors await the manufacturing PMI for the similar period, scheduled to be released on February 22 by 08:30GMT.

The German 10-year bond yields, which move inversely to its price, rose 1/2 basis point to 0.73 percent, the yield on 30-year note also surged 1 basis point to 1.40 percent and the yield on short-term 2-year too traded 1 basis point higher at -0.49 percent by 10:15GMT.

The Mannheim-based ZEW research institute said its monthly survey showed its economic sentiment index fell to 17.8 from 20.4 in January. That was still better than the consensus forecast for a reading of 16.5. A separate gauge measuring investors’ assessment of the economy’s current conditions ticked down to 92.3 from 95.2 last month. That compared with the consensus forecast for a decrease to 93.9.

Meanwhile, the German DAX fell 0.28 percent to 12,351.07 by 10:20GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bearish at -149.02 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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