The German bunds plunged during late European session Friday after the country’s unemployment report for the month of September cheered market participants. Also, eurozone’s consumer price inflation (CPI) data for the month of September, rose, meeting consensus estimates, which added to widespread losses in bund prices.
The German 10-year bond yields, which move inversely to its price, plunged 7 basis points to 0.459 percent, the yield on 30-year note also slumped 5-1/2 basis points to 1.064 percent and the yield on short-term 2-year traded nearly 3-1/2 basis points lower at -0.543 percent by 11:20GMT.
Germany's jobless numbers fell more than expected in September, pushing down the unemployment rate to its lowest level since German reunification in 1990, data showed on Friday. The Federal Labour Office said the seasonally adjusted jobless total fell by 23,000 to 2.303 million. That compared with an expected drop of 9,000 forecast in a Reuters poll. The unemployment rate eased to 5.1 percent from 5.2 percent in August, reflecting the strength of a labour market that has become the anchor of a consumer-led upswing.
Further, according to Eurostat’s flash reading of Eurozone CPI report, the annual reading came in at 2.1 percent in September, matching market estimates. Further, the core figures eased to 0.9 percent in the reported month, when compared to 1.1 percent expectations and 1.0 percent previous.
Lastly, a survey published on Thursday had shown that the mood among German shoppers has improved heading into October as shoppers' incomes and economic expectations both rose, suggesting that consumers will keep feeding the growth of Europe's largest economy.
Meanwhile, the German DAX slumped 1.48 percent to 12,250.96 by 11:25GMT, while at 11:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bearish at -147.22 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex


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