German bunds slump in line with global debt market after U.S. posts stronger-than-expected June CPI

The German bunds slumped during European session Friday, following the wave of global debt market fall after the United States’ Treasuries, tracking the better-than-expected rise in the June consumer price inflation (CPI), that led to hopes of a recovery in the world’s largest economy.

The German 10-year bond yields, which move inversely to its price, jumped 1-1/2 basis points to -0.249 percent, the yield on 30-year note surged 2 basis points to 0.395 percent and the yield on short-term 2-year traded flat at -0.724 percent by 11:15GMT.

In May compared with April, seasonally adjusted industrial production rose by 0.9 percent in the euro area (EA19) and by 0.8 percent in the EU28, according to estimates from Eurostat, the statistical office of the European Union.

In April, industrial production fell by 0.4 percent in the euro area and by 0.6 percent in the EU28. In May 2019 compared with May 2018, industrial production decreased by 0.5 percent in the euro area and increased by 0.4 percent in the EU28.

Meanwhile, the German DAX traded flat at 12,333.93 by 11:20GMT