German bunds trade flat as Q2 GDP remains unchanged; Yellen’s Jackson Hole speech in focus

The German bunds traded nearly flat Wednesday after data showed that the country’s second-quarter gross domestic product (GDP) remained unchanged from the previous flash estimate. Also, markets are likely to maintain recent range in the lead up to Fed Chair Yellen’s Jackson Hole speech on Friday.

The yield on the benchmark 10-year bond hovered around -0.089 percent mark, the yield on long-term 30-year note remained steady at 0.411 percent and the yield on short-term 3-year bond stood unchanged at -0.636 percent by 09:00 GMT.

Germany’s gross domestic product expanded during the second quarter, following higher proportion of state expenses, coupled with surge in exports and private consumption. Further, the upbeat economic growth offset the weaker investment by companies in Europe's biggest economy.

Germany expanded 0.4 percent in Q2, with exports adding 0.6 percentage points to GDP as exports rose 1.2 percent on the quarter and imports inched down 0.1 percent, data released by Federal Statistics Office Destatis showed Wednesday.

Lastly, investors will remain keen to focus on the upcoming economic data, highlighted by Business expectations, Ifo Business Climate and GfK German consumer climate.

Meanwhile, the German stock index DAX Index traded 0.40 percent higher at 10,635 by 09:00 GMT.