German bunds suffer after August manufacturing PMI cheers market investors
The German bunds suffered during European trading session Thursday after the country’s manufacturing PMI for the month of August cheered market investors, edged tad higher from that in July.
The German 10-year bond yields, which move inversely to its price, jumped 2 basis points to -0.654 percent, the yield on 30-year note surged 3 basis points to -0.144 percent and the yield on short-term 2-year traded 1 basis point higher at -0.871 percent by 10:00GMT.
At 51.4 in August, the IHS Markit Flash Germany Composite Output Index – which is based on approximately 85 percent of usual monthly replies – was up slightly from 50.9 in July, but still pointed to one of the weakest performances over the past six years.
Robust growth of service sector business activity kept the headline index above the 50.0 no-change mark, although it was a slower (but still marked) decrease in manufacturing output that was behind the slightly improved reading. As such, August also saw the IHS Markit Flash Germany Manufacturing PMI tick up from 43.2 in July to 43.6.
Meanwhile, the German DAX traded -0.26 basis point lower at 11,771.89 by 10:10GMT.