The German bunds slumped during European session Monday ahead of the European Central Bank (ECB) President Mario Draghi’s speech, scheduled to be delivered today by 15:00GMT and the country’s labour market report for the month of October, due for release on October 30 by 08:55GMT, for added information in the debt market.
The German 10-year bond yield, which move inversely to its price, jumped 2-1/2 basis points to -0.351 percent, the yield on 30-year note surged 4 basis points to 0.163 percent while the yield on short-term 2-year remained flat at -0.655 percent by 10:00GMT.
It will be a busy week for top-tier euro area economic data too, with the flash estimates of Q3 GDP and October CPI (Thursday) and the European Commission’s economic sentiment indicator (Wednesday) key releases, Daiwa Capital Markets reported.
In particular, Q3 GDP in the euro area is expected to show that growth slowed to 0.1 percent q/q, half the pace seen in Q2 and the softest since Q113, the report added.
Thursday will also bring the flash estimates of October inflation from the euro area, France and Italy, with the equivalent figures for Germany and Spain due on Wednesday. Having surprised on the downside in September, euro area headline CPI is expected to have edged even lower in October by 0.2ppt to 0.7 percent y/y on the back of lower energy inflation, while core inflation likely moved sideways at 1.0 percent y/y, Daiwa further noted in the report.
Meanwhile, the German DAX remained tad 0.25 percent higher at 12,926.54 by 10:10GMT.


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