German bunds slide in silent trading hours ahead of Eurozone’s November industrial production
The German bunds slid during European trading session Monday amid silent trading hours that witnessed data of little economic significance ahead of eurozone’s industrial production and trade balance data for the month of November, scheduled to be released on January 15 by 10:00GMT.
The German 10-year bond yield, which move inversely to its price, gained 1-1/2 basis points to -0.215 percent, the yield on 30-year note jumped 2-1/2 basis points to 0.342 percent and the yield on short-term 2-year traded 1 basis point higher at -0.592 percent by 10:00GMT.
Perhaps the most notable new euro area economic release of the week will be the ECB account from its 12 December Governing Council meeting, the first to be chaired by President Lagarde. Of course, on that occasion, policy was left unchanged with the ECB’s interest rates, monthly asset purchases and forward guidance all unamended, Daiwa Capital Markets reported.
So, among other things, the Governing Council left open the door to further rate cuts. The post-meeting press conference also suggested that Lagarde was keen not to pre-empt the findings of the ECB’s scheduled strategic policy review, which is now underway, the report added.
Nevertheless, the account will no doubt be closely watched for any insight into the Governing Council’s assessment of the economic outlook and how policy might evolve over coming quarters, Daiwa further noted in the report.
Meanwhile, the German DAX edged tad higher to 13,491.46 by 10:10GMT.