German bunds remain flat amid silent trading session ahead of ECB’s De Guindos’ speech

The German bunds remained flat during European trading session Thursday amid a muted trading session that witnessed data of little economic significance ahead of European Central Bank (ECB) Vice President De Guindos’ speech, scheduled to be delivered today at 12:30GMT.

The German 10-year bond yields, which move inversely to its price, hovered around 0.012 percent, the yield on 30-year note remained tad higher at 0.636 percent and the yield on short-term 2-year traded flat at -0.602 percent by 09:35GMT.

After hitting a record high on Tuesday, Wall Street nudged lower yesterday with the S&P500, DJI and NASDAQ indices all declining 0.2 percent. The US dollar continued its firmer trend, however, as did the US Treasury market with the 10-year yield falling 5bps to 2.52 percent. That followed the move in euro area govvies after the downbeat Ifo survey that saw 10-year Bund yields decline back below zero for the first time in about a fortnight, Daiwa Capital Markets reported.

It should be an uneventful day from the euro area with no top-tier economic data due for release. ECB Vice President De Guindos will speak publicly in New York, the report added.

Meanwhile, the German DAX remained flat at 12,312.49 by 09:40GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained slightly bearish at -81.02 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex