German bunds rise in muted session ahead of September manufacturing PMI

The German bunds rose during European session Tuesday amid a muted trading day that witnessed data of little economic significance. Investors will now be eyeing the country’s manufacturing PMI for the month of September, scheduled to be released on September 21 by 07:30GMT for further direction in the debt market.

The German 10-year bond yields, which move inversely to its price, slipped nearly 1 basis point to 0.449 percent, the yield on 30-year note slumped nearly 2 basis points to 1.089 percent and the yield on short-term 2-year traded tad lower at -0.544 percent by 09:00GMT.

It’s set to be an uneventful day in the major economies today. In the euro area, Italian industrial sales and orders figures for July are the only new economic data of note – recent hard data and surveys are already indicative of rising risks that Q3 will bring a third consecutive quarterly contraction in Italy’s manufacturing output, Daiwa Capital Markets reported.

Further, ECB President Draghi’s speech this morning in Paris avoided discussion of monetary policy, focussing exclusively on banking supervision issues. His speech tomorrow in Berlin, ostensibly on reforms to strengthen the euro area, might be of more interest to markets, the report added.

Meanwhile, the German DAX rose 0.54 percent to 12,159.46 by 09:10GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 28.66 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex