German bunds jump ahead of ECB President Draghi’s speech, November unemployment change

The German bunds jumped during European session Tuesday ahead of the European Central Bank’s (ECB) President Mario Draghi’s speech, scheduled to be held on November 29 by 14:00GMT, followed by the country’s unemployment change for the month of November, scheduled to be released on the same day by 08:55GMT for further direction in the debt market.

The German 10-year bond yields, which move inversely to its price, plunged nearly 2-1/2 basis points to 0.340 percent, the yield on 30-year note slumped 2 basis points to 0.999 percent and the yield on short-term 2-year traded tad lower at -0.640 percent by 09:35GMT.

After last week’s downbeat flash PMIs and yesterday’s disappointing Ifo survey, the steady flow of negative sentiment indicators from the euro area continued this morning. In particular, the INSEE French consumer confidence survey saw a notable drop in its headline indicator, from 95 to 92, the lowest level since early 2015 and well below the long-run average.

Sentiment among German businesses weakened further this month. The Ifo Business Climate index, released yesterday, fell to 102.0 points in November from 102.9 points (seasonally adjusted) in October, marking its third consecutive decrease.

Companies scaled back their assessments of the current business situation albeit from a high level. Their business expectations also clouded over. Together with other indicators, these results point to 0.3 percent economic growth in the fourth quarter at most. The German economy is cooling down.

Meanwhile, the German DAX remained tad lower at 11,351.17 by 09:40GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -61.87 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex