German bunds slump ahead of Q4 GDP, January CPI data

The German government bunds slumped Monday as investors eye the release of fourth-quarter gross domestic product (GDP) and consumer price inflation data, scheduled to be released on February 14.

The yield on the benchmark 10-year bond, which moves inversely to its price, rose 1-1/2 basis points to 0.33 percent, the long-term 30-year bond yields also jumped 2 basis points to 1.13 percent while the yield on short-term 3-year bond moved higher by nearly 1/2 basis point to -0.76 percent by 08:30 GMT.

The country’s January CPI is expected to have remained unchanged during the period at -0.6 percent, while the last quarter GDP is seen to rise 1.7 percent y/y and 0.5 percent q/q, from 1.5 percent y/y and 0.2 percent q/q respectively.

Further, Germany’s exports climbed 1.2 percent last year to EUR1.2 trillion (USD1.3 trillion), the Federal Statistics Office in Wiesbaden reported on Thursday, while imports rose 0.6 percent to EUR954.6 billion. That left Germany’s trade surplus at EUR253 billion in 2016.

Meanwhile, the German stock index DAX Index traded 0.39 percent higher at 11,712.50 by 08:30 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 25.46 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex