German bunds slip despite worse-than-expected March ZEW economic sentiment index; eyes on 10-year auction

The German bunds slumped Tuesday as investors have largely shrugged-off the country’s worse-than-expected ZEW economic sentiment index for the month of March. Now, investors shall be looking forward to the 10-year bund auction, scheduled to be held on March 21 for further direction in the bond market.

The German 10-year bond yields, which move inversely to its price, jumped 1-1/2 basis points to 0.58 percent, the yield on the 30-year note rose 1/2 basis point to 1.22 percent and the yield on short-term 2-year traded 1 basis point higher at -0.57 percent by 10:45GMT.

The Mannheim-based ZEW research institute said its monthly survey showed its German economic sentiment fell to 5.1 this month from 17.8 in February. That was compared to the consensus forecast for a reading of 13.1.

A separate gauge measuring investors’ assessment of the economy’s current conditions fell to 90.7 from 92.3 last month. That compared with the consensus forecast for a decrease to 90.0. Meanwhile, the ZEW’s index of eurozone economic sentiment decreased to 13.4 in March from 29.3 a month earlier. The consensus was looking the index to fall to just 28.1.

Meanwhile, the German DAX rose 0.22 percent to 12,243.80 by 10:50GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -40.40 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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