German bunds remain mixed after September ZEW economic sentiment improves, albeit in contraction
The German bunds remained mixed during European trading session Tuesday after the country’s ZEW economic sentiment improved, albeit still in contraction while investors keep a close eye on the eurozone’s consumer price inflation (CPI) for the month of August, scheduled to be released on September 18, for further direction in the debt market.
The German 10-year bond yield, which move inversely to its price, hovered around -0.476 percent, the yield on 30-year note edged tad down at 0.057 percent and the yield on short-term 2-year edged 1 basis point to -0.701 percent by 10:00GMT.
Germany's ZEW economic sentiment index, improved to -22.5 in September from a seven-year low of -44.1 in August, amid signs of burgeoning progress in the U.S.-China trade cries and the European Central Bank's (ECB) monetary policy easing package last week.
The reading is stronger than the -38.1 forecast by economists; the ZEW current conditions sub-index worsened to -19.9 from -13.5 in August, however.
"ECB speakers today may be interesting, especially after last week’s contentious decision to resume net asset purchases," Lloyds Bank commented in its latest report.
Meanwhile, the German DAX slipped -0.25 percent to trade at 12,349.95 by 10:10GMT.
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