German 10-year bund yields jump to near 2-month high on expectations of rise in Q1 GDP

The 10-year German bund yields jumped to near 2-month high Thursday, following expectations of a rise in the first quarter gross domestic product (GDP), scheduled to be released on May 12. Further, the country’s consumer price inflation (CPI) for the month of April, due tomorrow will provide detailed direction to the debt market.

The yield on the benchmark 10-year bond, which moves inversely to its price, jumped 4 basis points to 0.45 percent, the long-term 30-year bond yields climbed 3 basis points to 1.24 percent and the yield on the short-term 2-year bond traded 1-1/2 basis points higher at -0.64 percent by 08:40 GMT.

Germany's quarterly economic growth, to be released on Friday, is now expected to pick up to 0.6 percent in the first quarter from 0.4 percent in the final three months of last year, Reuters reported.

The final German CPI data for March confirmed the flash data with prices rising 0.2 percent for the month while the annual rate declined to 1.6 percent from 2.2 percent previously and the lowest reading for three months.

Meanwhile, the German stock index DAX Index traded 0.04 percent higher at 12,763.50 by 09:10 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -57.19 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex