German bunds jump ahead of Eurozone October consumer price inflation, ECB President Draghi’s speech

The German bunds jumped Wednesday as investors wait to watch the eurozone’s consumer price-led inflation index (CPI) for the month of October, scheduled to be released on November 16 by 10:00GMT. Also, the European Central Bank President Mario Draghi’s speech, due on the next day will add further direction to the debt market.

The German 10-year bond yields, which move inversely to its price, slumped 3 basis points to 0.36 percent, the yield on 30-year note also plunged 3 basis points to 1.25 percent and the yield on short-term 2-year traded 1 basis point lower at -0.75 percent by 10:00GMT.

The German economy expanded in Q3 at a surprisingly quick pace of 0.8 percent on Q2 (consensus: 0.6 percent). The strength of the upswing is also reflected in that a second spring seems to be on the cards for investment in machinery and equipment despite the recent fall in profit margins.

The German economy will likely continue growing strongly for two or three years, even with undesirable developments increasingly unfolding beneath the surface.

Meanwhile, the German DAX traded nearly 1 percent down at 12,910.50 by 10:05 GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bullish at 101.51 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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