German bunds slump ahead of 30-year auction, Eurozone January consumer inflation

The German government bunds slumped Monday as investors remain cautious ahead of the 30-year auction, scheduled to be held on February 22. Also, markets wait to read the Eurozone’s January consumer price inflation data, due on the same day.

The yield on the benchmark 10-year bond, which moves inversely to its price, plunged 2-1/2 basis points to 0.32 percent, the long-term 30-year bond yields also slumped over 2-1/2 basis points to 1.10 percent while the yield on short-term 2-year bond moved higher by 2 basis points to -0.79 percent by 08:10 GMT.

German producer prices accelerated in January, hitting the highest annual rate in almost five years. Producer prices rose 0.7 percent in January from December and increased 2.4 percent on the year, data released by the federal statistics office Destatis showed Monday. The annual producer price index rose at its highest rate since March 2012 when it rose by 2.6 percent.

Lastly, markets will also wait to watch the country’s fourth-quarter gross domestic product (GDP), scheduled for release on February 23.

Meanwhile, the German stock index DAX Index traded 0.67 percent higher at 11,834.25 by 08:10 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 63.80 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex