The German bunds jumped during European session Tuesday after the country’s ZEW economic sentiment data for the month of July, disappointed market sentiments in July, while investors still eye the eurozone’s consumer price inflation (CPI) for the month of June, due on July 16 by 09:00GMT for further direction in the debt market.
The German 10-year bond yields, which move inversely to its price, slipped 1 basis point to -0.306 percent, the yield on 30-year note slumped nearly 2 basis points to 0.308 percent and the yield on short-term 2-year traded tad down at -0.740 percent by 10:35GMT.
German ZEW’s monthly survey showed economic sentiment among investors fell to -24.5 from -21.1 in June. Economists had expected a less severe drop to -22.3. A separate gauge measuring investors’ assessment of the economy’s current conditions plunged to -1.1, the lowest level since June 2010.
"Ahead of tomorrow’s final euro area inflation figures – where we expect the headline rate to be revised slightly higher from the preliminary release on the back of the upwards revision to German figures – today will bring final CPI data from Italy, which are likely to confirm the flash estimate showing the headline EU-harmonised rate edging slightly lower in June, down 0.1ppt to 0.8 percent y/y," Daiwa Capital Markets reported.
Meanwhile, the German DAX traded tad -0.11 percent lower at 12,383.43 by 10:45GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained slightly bullish at 99.99 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex


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