German bunds slip on tad rise in November manufacturing PMI; ECB President Draghi’s speech eyed

The German bunds slipped during European session Monday after the country’s manufacturing PMI remained tad higher during the month of November. Investors will now keep a close eye on the European Central Bank (ECB) President Mario Draghi’s speech, scheduled to be held on December 5 by 08:30GMT for added direction in the debt market.

The German 10-year bond yields, which move inversely to its price, rose 1-1/2 basis points to 0.323 percent, the yield on 30-year note also climbed 1-1/2 basis points to 0.993 percent and the yield on short-term 2-year traded 1 basis point higher at -0.585 percent by 09:45GMT.

November saw the headline IHS Markit/BME Germany Manufacturing PMI – a single-figure snapshot of the performance of the manufacturing economy – slip to a 31-month low of 51.8, from 52.2 in October. It marked the tenth time in 2018 so far that the PMI has fallen, signalling a sustained cooling of growth from the record high seen at the end of 2017.

Finally, expectations among manufacturers towards the outlook for output remained subdued, with confidence improving only slightly from October's six-year low. Surveyed businesses highlighted concerns surrounding political uncertainty, trade tensions and weakness in the auto industry.

Meanwhile, the German DAX jumped 2.55 percent to 11,544.81 by 10:55GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 14.80 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex