German bunds gain after Eurozone February consumer price inflation misses market expectations

The German bunds gained Friday after Eurozone’s consumer price inflation index (CPI) for the month of February failed to meet market expectations, thus boosting safe-haven demand.

The German 10-year bond yields, which move inversely to its price, slumped nearly 1-1/2 basis points to 0.56 percent, the yield on 30-year note plunged 2 basis points to 1.21 percent and the yield on short-term 2-year traded flat at -0.57 percent by 10:20GMT.

Eurozone’s final estimate of HICP inflation for the month of February is revised down to 1.1 percent y/y from 1.2 percent previously recorded and compares with 1.3 percent y/y in January. The latest reading occurs on the back of a 0.2 percent m/m climb but the core annual rate - which excludes unprocessed foods and energy - is left intact at its preliminary reading of 1.2 percent y/y, same as in January.

Meanwhile, the German DAX rose 0.31 percent to 12,384.25 by 10:20GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -2.80 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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