German bunds slide ahead of April manufacturing PMI; investors shrug-off lower-than-expected March PPI

The German bunds slid Wednesday as investors are eyeing the country’s manufacturing PMI for the month of April, scheduled to be released on April 21. However, investors have largely shrugged-off the lower-than-expected producer prices for the month of March, released earlier today. 

The yield on the benchmark 10-year bond, which moves inversely to its price, jumped nearly 2-1/2 basis points to 0.22 percent, the long-term 30-year bond yields also climbed over 2 basis points to 0.94 percent and the yield on short-term 2-year bond rose 1-1/2 basis points to -0.78 percent by 08:20 GMT.

German producer prices remained unchanged in March, while the annual rate stabilized at the February level. Factory gate prices rose 3.1 percent in March from the same month of 2016, the Federal Statistics office Destatis said on Thursday. The annual rate matched the February level, the strongest annual rise in over five years.

Further, consumer prices in the Eurozone, released yesterday rose by an annual rate of 1.5 percent in March, down from two percent in February, according to the European Commission. Core inflation, which strips out the effects of volatile components in the price index, fell to 0.7 percent for the same period. However, European Central Bank (ECB) officials still expect the zone’s inflation to average 1.7 percent this year.

Meanwhile, the German stock index DAX Index traded 0.02 percent higher at 12,019.00 by 08:50 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bullish at 126.06 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex