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German bunds flat in silent session ahead of 10-year auction, Q1 GDP data
The German bunds remained flat during European trading session Tuesday amid a muted trading session that witnessed data of little economic significance. Investors will be keeping an eye on the country’s 10-year auction, scheduled to be held on May 22 by 09:40GMT and the gross domestic product (GDP) data for the first quarter of this year, due to be released on May 23 for further direction in the debt market.
The German 10-year bond yields, which move inversely to its price, traded flat at -0.086 percent, the yield on 30-year note hovered around 0.565 percent and the yield on short-term 2-year too remained steady at -0.628 percent by 09:55GMT.
The most noteworthy economic release from the euro area today will be Commission’s flash consumer confidence indicator for May. After an improvement in sentiment in the first quarter led principally by France, the survey suggested that households were once again more downbeat at the start of the second quarter, with the index falling ½pt in April to -7.9, the second-lowest reading for more than two years, Daiwa Capital Markets reported.
And the consensus expectation is for only a modest pickup in confidence this month. This morning will also see ECB Vice President Luis de Guindos speak publicly in London, the report added.
Meanwhile, the German DAX rose 0.71 percent to trade at 12,127.14 by 10:05GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 21.87 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex