German bunds jump ahead of euro area’s June preliminary consumer confidence indicator

The German bunds jumped during European trading session Thursday ahead of the euro area’s preliminary consumer confidence index for the month of June, scheduled to be released today by 14:00GMT.

The German 10-year bond yields, which move inversely to its price, slumped nearly 2-1/2 basis points to -0.309 percent, the yield on 30-year note plunged nearly 4 basis points to 0.267 percent and the yield on short-term 2-year traded nearly 2-1/2 basis points lower at -0.735 percent by 11:00GMT.

Today’s most notable economic data release in the euro area will be the Commission’s preliminary consumer confidence indicator for June. Having risen in May to a six-month high of -6.5, the consensus forecast is for no change in the current month, Daiwa Capital Markets reported.

Politics-wise, the EU leaders will meet again later today for another summit, with the appointments to the top jobs at the EU institutions (including Draghi’s successor at the ECB) again on the agenda.

"But we certainly do not expect a meaningful breakthrough at this meeting, with a further summit on June 30 already set to try to reach an agreement. In the markets, finally, Spain and France will sell bonds of various maturities," the report added.

Meanwhile, the German DAX traded nearly 1 percent higher at 12,409.39 by 11:05GMT, while at 11:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 35.49 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex