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German bunds remain tad higher after returning from week-day holiday; eyes on U.S. economic data

The German bunds remained tad higher during European trading session Thursday after markets returned from a week-day holiday amid otherwise, silent hours that barely witnessed data of any major economic significance.

However, markets will be closely eyeing the United States’ economic data, due for release later today, which will provide further direction to the debt prices.

The German 10-year bond yield, which move inversely to its price, slipped 1 basis point to -0.594 percent, the yield on 30-year note also edged 1 basis point down to -0.117 percent while the yield on short-term 2-year remained flat at -0.760 percent by 10:35GMT.

The German construction sector ended the third quarter on a more stable footing, latest PMI data showed, as a rise in housing activity offset further – albeit slower – decreases in commercial and civil engineering activity. There was also a renewed increase in purchasing activity and sustained growth in construction employment.

Total industry activity rose fractionally in September after declines in each of the previous two months. This was highlighted by the headline seasonally adjusted IHS Markit Germany Construction Purchasing Managers’ Index (PMI) – a measure of month-on-month changes in total industry activity – registering 50.1, up sharply from August's 62-month low of 46.3.

Meanwhile, the German DAX traded flat at 11,920.68 by 10:40GMT.

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