German bunds flat in silent session ahead of ECB’s monetary policy meeting
The German bunds remained flat during European trading session Wednesday ahead of the European Central Bank’s (ECB) monetary policy meeting, scheduled to be held on January 23 by 12:45GMT.
The German 10-year bond yield, which move inversely to its price, hovered around -0.remained flat at 0.261 percent and the yield on short-term 2-year too remained steady at -0.587 percent by 09:50GMT.
While yesterday’s ZEW survey suggested a significant rebound in optimism among market analysts about the euro area outlook at the start of the year, the business surveys usually offer a more reliable guide to economic activity, Daiwa Capital Markets reported.
And the latest French business confidence survey – the first guide to the economic climate in January in the euro area’s second largest member state – suggested a slight softening of sentiment at the start of the year, the report added.
In particular, the headline business climate index fell 1pt from a downwardly-revised reading for December to an eleven-month low of 104.0, suggestive of continued albeit relatively tepid economic growth, Daiwa further noted in the report.
Meanwhile, the German DAX edged tad 0.17 percent higher to 13,579.48 by 09:55GMT.