German bunds lose ground after Eurozone October CPI rises, beats market expectations

The German bunds lost ground during European session Wednesday following rise in Eurozone’s consumer price inflation (CPI) data for the month of October, beating market expectations as well.

Also, eurozone’s unemployment rate for September, remained unchanged, meeting consensus estimates as well.

The German 10-year bond yields, which move inversely to its price, rose 1 basis point to 0.382 percent, the yield on 30-year note remained tad higher at 1.026 percent and the yield on short-term 2-year traded nearly flat at -0.654 percent by 10:20GMT.

Euro area annual inflation is expected to be 2.2 percent in October 2018, up from 2.1 percent in September 2018, according to a flash estimate from Eurostat, the statistical office of the European Union.

Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in October (10.6 percent, compared with 9.5 percent in September), followed by food, alcohol & tobacco (2.2 percent, compared with 2.6 percent in September), services (1.5 percent, compared with 1.3 percent in September) and non-energy industrial goods (0.4 percent, compared with 0.3 percent in September).

Meanwhile, the German DAX rose 1.30 percent to 11,435.63 by 10:25GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -18.44 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex