German bunds slide following wider-than-expected decline in March unemployment rate

The German bunds slid Friday, after reading wider-than-expected decline in the country’s unemployment rate during the month of March. Also, investors remain keen to watch the Eurozone’s March consumer price inflation, scheduled to be released shortly today.

The yield on the benchmark 10-year bond, which moves inversely to its price, rose 1 basis point to 0.34 percent, the long-term 15-year bond yields rose 1/2 basis point to 0.54 percent and the yield on the short-term 2-year bond traded 1 basis point higher at -0.73 percent by 08:20 GMT.

German unemployment unexpectedly dropped to a new record low in March as Europe’s largest economy powered ahead.

The jobless rate fell to 5.8 percent, from 5.9 percent, and the number of people out of work slid by a seasonally adjusted 30,000 to 2.6 million, data from the Federal Labor Agency in Nuremberg showed on Friday. Economists in a Bloomberg survey forecast no change in the unemployment rate and a 10,000 decline in the number of people seeking work.

"The job market continues to develop favourably. With the onset of spring activity, the number of unemployed people has declined, employment growth is continuing unabatedly, and demand for new employees continues to be high," Bloomberg reported, citing Detlef Scheele, Board Member, German Labor agency.

Meanwhile, the German stock index DAX Index traded 0.09 percent lower at 12,246.25 by 08:30 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -67.15 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex