Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

German bunds lose ground after ECB President Draghi points to solid economic expansion in eurozone

The German bunds lost ground on the last trading day of the week after European Central Bank President Mario Draghi delivered an optimistic speech at the Frankfurt European Banking Congress today.

The German 10-year bond yields, which move inversely to its price, jumped 1-1/2 basis points to 0.38 percent, the yield on the 30-year note rose nearly 1 basis point to 1.27 percent and the yield on short-term 2-year traded 2 basis points higher at -0.69 percent by 09:10GMT.

"A sustained adjustment is one where the return of headline inflation towards our objective is durable and not just a temporary blip, and it can be self-sustained without monetary policy support. We do now see inflation moving steadily away from the very low levels of recent years, although progress remains incomplete and partial," Draghi said.

An uneventful end to the week for euro area data brings just the September construction output and balance of payments reports. With sentiment in the sector at a decade high, construction output seems likely to have returned to expansion in September having moved broadly sideways from early spring on. With the goods trade surplus having risen to a series high that month, the current account surplus might also be expected to have jumped to a new nominal high in September.

Meanwhile, the German DAX traded 0.14 percent down at 13,029.50 by 09:10 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 28.16 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.