The Eurozone periphery bonds gained Wednesday ahead of the zone’s consumer price inflation index (CPI), scheduled to be released on June 16. Also, the Eurogroup meetings, due on June 15 will render further direction to the debt market.
The benchmark German 10-year bond yields, which moves inversely to its price, fell nearly 1 basis point to 0.25 percent, the French 10-year bond yields, remained flat at 0.60 percent, Irish 10-year bond yield plunged 7 basis points to 0.69 percent; however, Italian equivalent slumped 3-1/2 basis points to 1.94 percent, Netherlands 10-year bonds yield traded nearly 1 basis point lower at 0.48 percent, Portuguese equivalents nose-dived nearly 5 basis points to 2.88 percent and the Spanish 10-year yields traded 1-1/2 basis points lower at 1.41 percent by 09:20 GMT.
The mood among German investors worsened slightly in June, a survey showed on Tuesday, but their assessment of the German economy's current condition improved mainly due to healthier growth in the European Union. The Mannheim-based ZEW research institute said its monthly survey showed its economic sentiment index fell to 18.6 from 20.6 in May. The Reuters consensus forecast was for a rise to 21.5.
The European economy is making good progress. In the first quarter the euro area grew again at a healthy pace and faster than the USA and the United Kingdom. Exceptionally high business confidence suggests that this positive trend will continue.
"We therefore raise our economic forecast by 0.2 percentage points to 1.8 percent for this year and now expect slightly higher momentum of 1.7 percent instead of 1.6 percent next year as well," KfW Research commented in its latest report.
Meanwhile, the pan-European STOXX 600 index was up 0.58 percent at 391.00, German DAX rose 0.60 percent to 12,842.25, France’s CAC 40 jumped 1.00 percent to 5,314.25, and the PSI20 Index traded 0.69 percent higher at 5,340.45 by 09:50 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index stood neutral at 60.59 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex


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