German bunds slump ahead of August manufacturing PMI, ECB’s account of July MPM

The German bunds slumped during European trading session Wednesday ahead of the country’s manufacturing PMI for the month of August, scheduled to be released on August 22 by 07:30GMT and the European Central Bank’s (ECB) account of July monetary policy meeting, due on the same day later by 11:30GMT for further direction in the debt market.

The German 10-year bond yields, which move inversely to its price, jumped 2 basis points to -0.670 percent, the yield on 30-year note also surged 2 basis points to -0.152 percent and the yield on short-term 2-year traded tad higher at -0.901 percent by 10:20GMT.

Today, PM Boris Johnson is meeting with German chancellor Angela Merkel to, among other things, discuss Brexit. In his letter Monday, Johnson made it clear that the backstop needs to be removed for the withdrawal deal to pass the House of Commons but the EU has repeatedly rejected this, as it sees it as a necessary insurance policy to avoid a hard border, Daiwa Capital Markets reported.

Meanwhile, the German DAX traded 1 basis point higher at 11,779.70 by 10:25GMT.