The German bunds gained during European session of the second trading day of the week Tuesday after eurozone’s consumer price inflation (CPI) data for the month of May betrayed market expectations, while unemployment rate for April, rose, thus weighing on bond yields.
Investors now will keep a close eye on the European Central Bank’s (ECB) monetary policy decision, scheduled to be unveiled on June 6 at 11:45GMT for further detailed direction in the debt market.
The German 10-year bond yields, which move inversely to its price, slipped nearly 1-1/2 basis points to -0.212 percent, the yield on 30-year note also suffered 1-1/2 basis points to 0.402 percent and the yield on short-term 2-year traded nearly 1 basis point lower at -0.650 percent by 10:40GMT.
Euro area annual inflation came in at 1.2 percent in May 2019, down from 1.7 percent in April according to a flash estimate from Eurostat, the statistical office of the European Union.
Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in May (3.8 percent, compared with 5.3 percent in April), followed by food, alcohol & tobacco (1.6 percent, compared with 1.5 percent in April), services (1.1 percent, compared with 1.9 percent in April) and non-energy industrial goods (0.3 percent, compared with 0.2 percent in April).
Further, the euro area’s (EA19) seasonally-adjusted unemployment rate was 7.6 percent in April 2019, down from 7.7 percent in March 2019 and from 8.4 percent in April 2018. This is the lowest rate recorded in the euro area since August 2008. The EU28 unemployment rate was 6.4 percent in April 2019, stable compared with March 2019 and down from 7.0 percent in April 2018, Eurostat data further showed.
Meanwhile, the German DAX traded nearly 1 percent higher at 11,903.53 by 10:45GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 6.03 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex


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