German bunds jump after UK Brexit Minister Raab resigns; eyes on ECB President Draghi’s speech, Eurozone October CPI

The German bunds jumped during European session Thursday after the United Kingdom’s Brexit Minister Dominic Raab resigned, after disagreement with Prime Minister Theresa May over the set of Brexit negotiations.

Investors will now be eyeing the European Central Bank (ECB) President Mario Draghi’s speech, scheduled to be delivered on November 16 by 08:30GMT and eurozone’s consumer price inflation for the month of October, also due to be released on the same day by 10:00GMT will add further direction in the debt market.

The German 10-year bond yields, which move inversely to its price, slumped nearly 4 basis points to 0.362 percent, the yield on 30-year note plunged 3 basis points to 1.031 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points lower at -0.649 percent by 10:35GMT.

According to a report from CNBC, "Raab, in a letter to the U.K leader, said he could not reconcile with the terms of her proposed Brexit deal, after the promises the ruling Conservative Party made to the country in an election manifesto last year."

"On Wednesday, May said she had obtained enough support from her senior ministers for the deal to move forward. This came after she also received support from ministers at the EU. But market watchers say there are doubts over whether the draft withdrawal agreement will get parliamentary approval in the country."

Meanwhile, the German DAX remained tad higher at 11,408.49 by 10:40GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bearish at -115.639 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex