German bunds surge despite better-than-expected January ZEW economic sentiment index

The German bunds surged during European trading session Tuesday even as the country’s ZEW economic sentiment index for the month of January, came in better than market expectations ahead of the European Central Bank’s (ECB) monetary policy meeting, scheduled to be held on January 23 by 12:45GMT.

The German 10-year bond yield, which move inversely to its price, slipped 1 basis point to -0.224 percent, the yield on 30-year note suffered 1-1/2 basis points at 0.285 percent and the yield on short-term 2-year remained steady at -0.583 percent by 10:45GMT.

The German economic sentiment continues to rise significantly in January. The ZEW Indicator of Economic Sentiment rose 16 points to 26.7. This is the indicator’s highest value since July 2015. [https://www.econotimes.com/German-ZEW-Economic-Sentiment-index-rises-significantly-in-January-1572742]

The assessment of the economic situation in Germany has also rebounded significantly in the current survey, with the corresponding indicator rising to a level of -9.5 points, 10.4 points higher than in December.

Meanwhile, the German DAX edged tad -0.48 percent down to 13,485.93 by 10:50GMT.