German bunds flat in thin trade; GDP and inflation data eyed

The German bunds traded nearly flat on Tuesday, succumbing to thin trading activity during a relatively quiet session that saw data of little significance.

The yield on the benchmark 10-year bond hovered around -0.065 percent mark, the yield on short-term 30-year note dipped 1/2 basis point to 0.443 percent and the yield on short-term 2-year bond remained steady at 0.615 percent by 09:00 GMT.

In terms of recent economic release, Germany trade balance increased to 24.9 billion Euros, against market consensus of 23 billion Euros, from previous 21 billion Euros. Additionally, exports climbed 0.3 percent m/m, the consensus was for 1.1 percent m/m, from down 1.8 percent. Imports bounced 1.0 percent m/m, against market expectations of 0.6 percent m/m, previous 0.0 percent revised down from 0.1 percent.

Lastly, markets will also remain keen to focus on the upcoming economic data, highlighted by Q2 GDP and consumer inflation.

Meanwhile, the German stock index DAX Index traded 0.58 percent higher at 10,493 by 09:10 GMT.