German bunds flat after Eurozone CPI meets expectations in November, stays flat

The German bunds traded flat Monday after the eurozone’s consumer price-led inflation index (CPI) met market expectations during the month of November, albeit staying unchanged from that I October.

The German 10-year bond yields, which move inversely to its price, remained flat at 0.30 percent, the yield on 30-year note tad up at 1.10 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points higher at -0.70 percent by 10:30GMT.

Euro area annual inflation was 1.5 percent in November 2017, up from 1.4 percent in October. In November 2016, the rate was 0.6 percent. European Union annual inflation was 1.8 percent in November 2017, up from 1.7 percent in October. A year earlier the rate was 0.6 percent. These figures come from Eurostat, the statistical office of the European Union.

The largest upward impacts to the euro area annual inflation came from fuels for transport (+0.21 percentage points), heating oil (+0.07 pp) and milk, cheese & eggs (+0.05 pp), while telecommunication (-0.11 pp), garments (-0.07 pp) and social protection (-0.04 pp) had the biggest downward impacts. 

Meanwhile, the German DAX jumped 1.25 percent to 13,267.50 by 10:35 GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 42.55 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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