German bunds gain ahead of 10-year debt auction

The German bunds gained Wednesday as investors remained cautious ahead of 10-year debt auction. Also, traders poured into safe-haven instruments amid losses in riskier assets including equities and crude oil.

The yield on the benchmark 10-year bond fell 1-1/2 basis points to -0.093 percent, the yield on short-term 30-year note dipped 2-1/2 basis points to 0.401 percent and the yield on short-term 2-year bond slid 1 basis point to -0.625 percent by 09:10 GMT.

The German bonds have been closely following developments in oil markets because of their impact on inflation expectations. The crude oil prices declined more than 1 percent after API data showed a rise in US crude inventories.

The US inventories rose by 2.09 million barrels last week, the American Petroleum Institute was said to report. The International benchmark Brent futures fell 1.2 percent to $44.38 and West Texas Intermediate (WTI) dipped 1.24 percent to $42.24 by 09:10 GMT.

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 0.20 percent lower at 10,671 by 09:20 GMT.