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German bunds flat in silent trading ahead of Q3 GDP, November manufacturing PMI
The German bunds remained flat during European session Monday amid silent trading hours that barely witnessed any data of major economic significance ahead of the country’s gross domestic product (GDP) for the third quarter of this year and November month manufacturing PMI, both scheduled to be released by end of this week.
The German 10-year bond yield, which move inversely to its price, hovered around -0.325 percent, the yield on 30-year note traded flat at 0.160 percent and the yield on short-term 2-year edged tad lower to -0.639 percent by 09:45GMT.
In the euro area, the main economic focus this week will be Friday’s flash PMIs for November. While the headline manufacturing index is expected to report a modest pickup this month, it will still probably remain in contractionary territory, Daiwa Capital Markets reported.
And with little improvement anticipated in conditions in the services sector, the composite PMI is forecast to post only a modest increase in November, by 0.2pt to 50.8, which would still mark the third-lowest reading since mid-2013 and thus be consistent with a moderation in GDP growth so far in Q4.
Meanwhile, in Germany, despite an anticipated improvement, the composite PMI is still expected to remain firmly below the key-50 level, while in France the respective index is likely to indicate little change in conditions this month. Friday will also bring revised German Q3 GDP figures, which will include the full national accounts breakdown, the report added.
Ahead of this will see the release on Thursday of the Commission’s flash consumer confidence indicator for November, which is likely to report a modest improvement on the month, albeit remaining firmly within the recent range. The same day will bring the release of the account of the ECB’s October policy meeting, although – if the respective press conference was anything to go by – that is likely to be a non-event, Daiwa further noted in the report.
Meanwhile, the German DAX traded tad -0.13 percent lower at 13,227.13 by 09:50GMT.