German bunds gain ahead of ECB President Draghi’s speech

The German bunds gained on Wednesday as investors wait to watch the European Central Bank (ECB) President Mario Draghi’s speech, scheduled to be held later in the day. However, prior, to that, the market is now reacting to the latest set of words delivered by the central bank’s chief economist Peter Praet.

The yield on the benchmark 10-year bond, which moves inversely to its price, fell nearly 1 basis point to 0.39 percent, the long-term 30-year bond yields slipped 1 basis point to 1.22 percent and the yield on short-term 2-year bond also traded nearly 1 basis point lower at -0.65 percent by 08:30 GMT.

In the latest speech by the ECB’s chief economist Praet, he said that upswing continues to broaden across sectors and countries the more synchronised economic upswing across regions should further support the eurozone recovery.

"We still need to create a sufficiently broad and solid info base to build confidence that the projected path of inflation is robust durable and self-sustained," he said.

Meanwhile, the German stock index DAX Index fell 0.19 percent to 12,635.75 by 08:50 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -3.07 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex