German bunds remain mixed after unemployment change data disappoints in January

The German bunds remained mixed after the country’s unemployment change for the month of January disappointed market sentiments, while Eurozone’s jobless rate remained unchanged during the month of December.

The German 10-year bond yields, which move inversely to its price, fell nearly 1-1/2 basis points to 0.171 percent, the yield on 30-year note also lost 1-1/2 basis points to 0.765 percent and the yield on short-term 2-year hovered around -0.559 percent by 10:10GMT.

Germany’s jobless total fell by less than expected in January, data showed on Thursday, and the unemployment rate remained at a record low.

The Labour Agency said demand for new hires among German companies remained solid. This should support a consumption-led growth cycle in Europe’s largest economy, which is experiencing a slowdown linked to trade frictions and concerns about Britain’s expected departure from the European Union, Reuters reported.

The Labour Office also said that the seasonally adjusted jobless total fell by 2,000 to 2.263 million. That compared with the forecast for a drop of 10,000. The unemployment rate remained at 5 percent, the lowest since German reunification in 1990, the report added.

Lastly, seasonally adjusted GDP rose by 0.2 percent in the euro area (EA19) and by 0.3 percent in the EU28 during the fourth quarter of 2018, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union. In the third quarter of 2018, GDP had also grown by 0.2 percent in the euro area and by 0.3 percent in the EU28.

Meanwhile, the German DAX rose 0.07 percent to 11,189.77 by 10:20GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -41.82 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex