German bunds gain despite higher-than-expected Eurozone February retail sales; ECB President Draghi’s speech eyed

The German bunds gained Tuesday as investors largely shrugged off Eurozone’s higher-than-expected retail sales for the month of February. Also, investors remain keen to watch the European Central Bank (ECB) President Mario Draghi’s speech scheduled for later in the day.

The yield on the benchmark 10-year bond, which moves inversely to its price, slumped 2 basis points to 0.26 percent, the long-term 30-year bond yields also plunged nearly 2 basis points to 1.05 percent and the yield on short-term 2-year bond traded 3-1/2 basis points lower at -0.82 percent by 09:10 GMT.

Euro zone sales increased by more than expected in February as shoppers bought far more clothing than in January in a sign that consumers are still spending despite higher inflation.

Retail sales in the 19 countries sharing the euro increased by 0.7 percent in February from January, the European Union's statistics office Eurostat said on Tuesday, more than the average market expectation of a 0.5 percent rise. Year-on-year, the volume of retail sales grew 1.8 percent in January, higher than the 1.4 percent rise forecast by economists polled by Reuters.

Meanwhile, the German stock index DAX Index traded 0.18 percent lower at 12,231.50 by 09:50 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 38.08 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex