The German government bunds declined modestly Tuesday, following higher-than-expected manufacturing Purchasing Managers’ Index (PMI) during the month of February. Also, investors are looking forward to the release of Eurozone’s consumer price inflation (CPI), scheduled for Wednesday.
Further, investors remain cautious ahead of the 30-year auction, scheduled to be held on February 22.
The yield on the benchmark 10-year bond, which moves inversely to its price, rose nearly1 basis point to 0.30 percent, the long-term 30-year bond yields also jumped over 1 basis point to 1.11 percent while the yield on short-term 1-year bond moved higher by nearly 2 basis points to -0.84 percent by 08:40 GMT.
The Markit Flash Germany Composite Output Index rose from January’s 4-month low of 54.8 to 56.1, the highest since April 2014 and signalling strong growth in the Eurozone’s largest economy. Output has risen continuously since May 2013.
Further, Germany’s flash manufacturing PMI rose to 57.0, a 69-month high, from 56.4 in January. Lastly, markets will also wait to watch the country’s fourth-quarter gross domestic product (GDP), scheduled for release on February 23.
Meanwhile, the German stock index DAX Index traded 0.21 percent higher at 11,852.25 by 08:50 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -70.28 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
