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German bunds jump even as Q1 GDP cheers investors; April eurozone CPI in focus
The German bunds jumped during European trading session Wednesday after investors have largely shrugged-off the rise in the country’s gross domestic product (GDP) for the first quarter of this year, released early this year.
Investors will now also be focussed on the eurozone’s consumer price inflation (CPI) data for the month of April, scheduled to be released by end of this week, which shall provide further direction to the debt market.
The German 10-year bond yields, which move inversely to its price, slumped 3 basis points to -0.101 percent, the yield on 30-year note plunged nearly 4 basis points to 0.536 percent and the yield on short-term 2-year traded 2 basis points down at -0.659 percent by 09:55GMT.
Germany’s gross domestic product (GDP) expanded a meagre 0.4 percent q/q, data released by the Federal Statistics Office showed Wednesday. On a y/y basis, it grew a calendar-adjusted 0.7 percent. Both preliminary readings were in line with market expectations.
Further, the Statistics Office said that the region’s growth was mainly driven by construction and increased household spending. Corporate investments in machinery and equipment also helped, while state spending was slightly negative, Reuters reported.
Meanwhile, the German DAX traded tad 0.14 percent lower at 11,974.46 by 10:05GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -59.31 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex