German bunds slump despite weaker-than-expected Eurozone trade balance; Eurozone August CPI eyed

The German bunds slumped on the last trading day of the week Friday as investors have largely shrugged-off Eurozone’s weaker-than-expected trade balance for the month of July. Investors will now remain focussed on the eurozone’s consumer price inflation (CPI) for the month of August, scheduled to be released by early next week for further direction in the debt market.

The German 10-year bond yields, which move inversely to its price, climbed 1-1/2 basis points to 0.439 percent, the yield on 30-year note also surged 1-1/2 basis points to 1.109 percent and the yield on short-term 3-year traded 1/2 basis point higher at -0.443 percent by 10:40GMT.

The first estimate for euro area (EA19) exports of goods to the rest of the world in July 2018 was EUR194.6 billion, an increase of 9.4 percent compared with July 2017 (EUR177.8 billion). Imports from the rest of the world stood at EUR177.1 billion, a rise of 13.4 percent compared with July 2017 (EUR156.2 billion).

As a result, the euro area recorded a EUR17.6 billion surplus in trade in goods with the rest of the world in July 2018, compared with EUR21.6 billion in July 2017. Intra-euro area trade rose to EUR162.3 billion in July 2018, up by 9.3 percent compared with July 2017.

Meanwhile, the German DAX rose 0.23 percent to 12,082.64 by 10:50GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 34.04 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex