The German bunds suffered during European trading session Thursday amid a muted trading session that witnessed data of little economic significance ahead of the country’s producer price index (PPI) for the month of August, scheduled to be released on September 20 by 06:00GMT.
The German 10-year bond yield, which move inversely to its price, jumped 3-1/2 basis points to -0.478 percent, the yield on 30-year note also gained 3-1/2 basis points to 0.028 percent and the yield on short-term 2-year traded 2 basis points up at -0.693 percent by 09:45GMT.
It should be a quieter day for economic news from the euro area today, with just the ECB’s balance of payments for July due for release. In the markets, France and Spain will sell bonds with various maturities, Daiwa Capital Markets reported.
In addition, the ECB will publish the allotment results of its first (of seven) TLTRO-III longer-term refinancing operations. Last week saw the Governing Council make the conditions more attractive, reducing the premium interest rate on the loans by 10bps and increasing the loan maturity to three years (with the option of repayment after two), the report added.
Meanwhile, the German DAX remained tad 0.15 percent higher at 12,408.03 by 09:50GMT.


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