German bunds rise modestly on subdued risk sentiments, investors eye Q4 GDP

The German government bunds traded modestly higher Friday as investors remain sidelined in any trading activity amid a calm and quiet session amid slight fall in equities. Also, markets are eyeing the release of fourth quarter gross domestic product (GDP), scheduled to be released on January 30.

The yield on the benchmark 10-year bond, which moves inversely to its price, hovered aroound 0.48 percent, the long-term 30-year bond yields also fell 1-1/2 basis points to 1.22 percent and the yield on short-term 2-year bond traded flat at -0.64 percent by 09:10 GMT.

The German bunds have been closely following developments in oil markets because of their impact on inflation expectations. Crude oil prices recovered in afternoon session on speculations of some planned output cuts agreed by OPEC and non-OPEC producers.

The International benchmark Brent futures moved lower 0.53 percent to USD55.94 and West Texas Intermediate (WTI) rose 0.22 percent to USD53.66 by 9:20 GMT.

Lastly, markets will now be awaiting the release of German labor market data, along with eurozone’s consumer price inflation and GDP data by mid of next week.

Meanwhile, the German stock index DAX Index traded 0.26 percent lower at 11,818 by 09:20 GMT, while at 9:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -1.32 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex