German bunds nearly flat after October unemployment change disappoints investors

The German bunds remained nearly flat during European session Wednesday after the country’s unemployment change for the month of October disappointed market sentiments, while the jobless rate remained unchanged.

Investors will be eyeing Germany’s retail sales for the month of September and eurozone’s consumer price inflation (CPI) for the similar period, both scheduled to be released on October 31 by 10:00GMT for added information in the debt market.

The German 10-year bond yield, which move inversely to its price, slumped 2-1/2 basis points to -0.353 percent, the yield on 30-year note also plummeted 3-1/2 basis points to 0.142 percent and the yield on short-term 2-year suffered 1-1/2 basis points down at -0.661 percent by 10:40GMT.

The number of jobless climbed by 6k in this month, compared with estimates for an increase of 3k. However, the unemployment rate held steady at 5 percent, near a record low. The report follows a survey this month showing manufacturing stuck in a slump and industry employment falling at the fastest pace in almost 10 years, Bloomberg reported.

Further, "German Chancellor Angela Merkel’s administration has so far insisted that there’s no immediate case to deviate from its balanced budget, a stance backed by Bundesbank President Jens Weidmann. Still, there are nascent signs that some members of the political establishment are starting to reconsider their stance. ECB President Mario Draghi, who ends his term this week, says fiscal stimulus will allow the central bank to exit its unpopular negative interest-rate policy sooner," the report added.

Meanwhile, the German DAX remained tad -0.13 percent lower at 12,923.38 by 10:45GMT.