UK gilts shrug off solid retail sales data; 10-year yield falls to 1-week low as coronavirus fear haunts
German bunds slide after March CPI meets expectations; eurozone February industrial production eyed
The German bunds slid during European trading session Thursday after the country’s consumer price inflation (CPI) for the month of March met market expectations, also unchanged from the previous reading.
Investors will now be keeping an eye on the eurozone’s industrial production for the month of February, scheduled to be released on April 12 by 09:00GMT, which shall provide further evidence to the debt market.
The German 10-year bond yields, which move inversely to its price, traded nearly 1 basis point higher at -0.026 percent, the yield on 30-year note also remained tad higher at 0.621 percent and the yield on short-term 2-year hovered around -0.590 percent by 09:00GMT.
A quiet day for economic data from the euro area has seen the most notable new reports – final German and French CPI inflation data for March – released already. The German figures confirmed the flash estimates, which meant that, on the EU-harmonised measure, the annual rate dropped 0.3ppt to 1.4 percent y/y, the lowest since last April, Daiwa Capital Markets reported.
The details on the national measure, which saw the headline rate of inflation fall 0.2ppt to 1.3 percent y/y, suggested that energy price inflation reversed the drop of the last few months and rose notably, to 4.2 percent y/y, while food prices and the core components provided negative contributions. The rate for the former halved to only 0.7 percent y/y, while core inflation declined by 0.3ppt to an eleven-month low of 1.1 percent y/y, the report added.
Meanwhile, the German DAX slipped 0.25 percent to 11,875.64 by 09:15GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained slightly bullish at 80.40 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex