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German bunds tad down following upbeat January manufacturing PMI
The German bunds remained tad down during European trading session Friday following an upbeat manufacturing PMI for the month of January, released early today.
The German 10-year bond yield, which move inversely to its price, rose 1 basis point to -0.300 percent, the long-term 30-year yield also gained 1 basis point to 0.213 percent and the yield on short-term 2-year remained flat at -0.605 percent by 11:05GMT.
IHS Markit’s Flash Germany Composite Output Index – which tracks the combined change in activity across the country’s manufacturing and service sectors, and is based on approximately 85 percent of usual monthly replies – registered 51.1 at the start of the year, up from 50.2 in December and its highest since last August.
The headline Flash Germany Manufacturing PMI – which is a single-figure snapshot of factory business conditions calculated from measures of new orders, output, employment, supplier delivery times, and stocks of purchases – climbed to an 11-month high of 45.2 in January, up from December’s 43.7. The latest reading was still firmly in contraction territory, but signalled the overall rate of decline in manufacturing easing for the third time in the past four months.
Meanwhile, the German DAX jumped 1.32 percent to 13,565.25 by 11:10GMT.