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German bunds suffer after Eurozone August CPI meets estimates; ECB President Draghi’s speech eyed

The German bunds suffered on the first trading day of the week Monday after eurozone’s consumer price inflation (CPI) for the month of August, met market expectations. Investors will now be eyeing the European Central Bank’s (ECB) President Mario Draghi’s speech, scheduled to be held on September 18 by 08:15GMT for further direction in the debt market.

The German 10-year bond yields, which move inversely to its price, slumped 2 basis points to 0.414 percent, the yield on 30-year note slipped 1-1/2 basis points to 1.091 percent and the yield on short-term 2-year traded 1-1/2 basis points lower at -0.555 percent by 09:25GMT.

The euro area annual inflation rate was 2.0 percent in August 2018, down from 2.1 percent in July 2018. A year earlier, the rate was 1.5 percent. European Union annual inflation was 2.1 percent in August 2018, down from 2.2 percent in July. A year earlier, the rate was 1.7 percent. These figures are published by Eurostat, the statistical office of the European Union.

Looking ahead, most of the action in the euro area will come at the back end of the week. The preliminary September PMIs are due on Friday – having stabilised just below the level 55 in recent months, the euro area composite index is expected to be little changed again, signalling stable momentum at the end of Q3. Ahead of that on Thursday we will receive the preliminary estimate of the European Commission’s consumer sentiment indicator, according to the latest report from Daiwa Capital Markets.

Policy-wise, Draghi is scheduled to speak in Paris tomorrow and in Berlin on Wednesday – after last week’s post-Governing Council press conference he might be unlikely to offer more insights into the monetary policy outlook, the report added.

Meanwhile, the German DAX fell 0.21 percent to 12,098.76 by 09:30GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 40.11 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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December 9 01:30 UTC Released

CNCPI MM

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-0.3 %

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Previous

0.2 %

December 9 01:30 UTC Released

CNPPI YY

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2.7 %

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2.7 %

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3.3 %

January 31 00:00 UTC 450696450696m

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January 31 00:00 UTC 450696450696m

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January 22 19:00 UTC 462516462516m

ARTrade Balance

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-1541 %

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January 22 19:00 UTC 462516462516m

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-1541 %

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January 31 00:00 UTC 450696450696m

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January 31 00:00 UTC 450696450696m

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