Eurozone periphery bonds trend higher on expectations of rise in German manufacturing PMI

The Eurozone periphery bonds trended higher Wednesday on expectations of a rise in the country’s manufacturing PMI for the month of June, due for release on June 23.  

The benchmark German 10-year bond yields, which moves inversely to its price, fell 1-1/2 basis points to 0.24 percent, the French 10-year bond yields, also slipped nearly 1 basis point to 0.59 percent, Irish 10-year bond yield plunged nearly 7-1/2 basis points to 0.64 percent, Italian equivalent slumped 1-1/2 basis points to 1.90 percent, Netherlands 10-year bonds yield traded nearly 2 basis points lower at 0.45 percent, Portuguese equivalents remained almost flat at 2.87 percent and the Spanish 10-year yields traded 2-1/2 basis points lower at 1.36 percent by 08:50 GMT.

The eurozone's current account surplus narrowed in April as the surplus for both goods and services was slimmer than in the previous month, data from the European Central Bank showed Tuesday.

The current account balance stood at a surplus of EUR22.2 billion in April, following EUR35.7 billion in March. The balance is a rough measure of the gap between domestic savings and investment. The surplus in goods declined to EUR25.1 billion in April from EUR30.0 billion in March, while the surplus in services declined to EUR7.4 billion from EUR11.7 billion.

Meanwhile, the pan-European STOXX 600 index was down 0.59 percent at 386.88, German DAX slipped 0.60 percent to 12,739.50, France’s CAC 40 slumped 0.97 percent to 5,241.30, and the PSI20 Index traded 0.28 percent lower at 5,283.42 by 09:10 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index stood neutral at -24.52 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex