German bunds gain after composite PMI disappoints in September

The German government bunds gained Wednesday after the country’s composite PMI disappointed market expectations, thus pushing investors toward safe-haven assets.

The German 10-year bond yields, which moves inversely to its price, slumped 2 basis points to 0.44 percent, the yield on 30-year note also plunged 1-1/2 basis points to 1.23 percent and the yield on short-term 2-year traded 1 basis point lower at -0.71 percent by 09:10GMT.

At 56.7 in September, up from 55.7 in August, the final IHS Markit Eurozone PMI Composite Output Index matched the earlier flash estimate. The outlook also remained bright, with business optimism rising to a four-month high.

The final IHS Markit Eurozone PMI Services Business Activity Index registered 55.8 in September, up from 54.7 in August and above the earlier flash estimate of 55.6. The headline index has signaled expansion for 50 successive months. However, the average reading over the third quarter (55.3) was weaker than in the prior quarter (56.0).

Meanwhile, the German DAX traded 0.06 percent higher at 12,909.75 by 09:10 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 22.74 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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