Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

German bunds gain after March producer price index misses market expectations

The German bunds remained on the upside Friday after the country’s producer price index (PPI) for the month of March missed market expectations and investors are now eyeing the eurozone’s consumer confidence index for the month of April, scheduled for later in the day for further direction in the debt market.

The German 10-year bond yields, which move inversely to its price, slid nearly 1/2 basis point to 0.59 percent, the yield on 30-year note hovered around 1.16 percent while the yield on short-term 2-year slumped 2-1/2 basis points to -0.56 percent by 09:05GMT.

Prices faced by German manufacturers were softer than expected in March but it appears the rebound has continued. The index of producer prices for industrial products rose by 1.9 percent compared with March 2017, according to the Federal Statistics Office. This was slightly less than the 2 percent expected by a Thomson Reuters poll but up from 1.8 percent a month earlier. 

In the euro area, the end of the working week brings only the European Commission flash consumer confidence indicator for April. Having reached its highest level since 2000 at the start of the year, this indicator eased only slightly over the remainder of Q1, particularly when compared to the notable deterioration in business sector surveys.

"But today we expect to see a step down from the elevated reading of 0.1 seen February and March, suggesting that euro area economic momentum might have weakened further at the start of Q2. Whatever, expect Draghi to remain cautious about the policy path ahead when the ECB Governing Council meeting concludes next week," Daiwa Capital Markets commented in its latest report.

Meanwhile, the German DAX slipped 0.18 percent to 12,545.52 by 09:10GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -29.09 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

Lastly, FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.