Eurozone periphery bonds jump after energy prices witness massive fall following rise in US output

The Eurozone periphery bonds jumped Friday after energy prices witnessed massive downturn during the European session, following a rise in output in the United States.

The benchmark German 10-year bond yields, which moves inversely to its price, fell 1 basis point to 0.52 percent, the French 10-year bond yields also slipped nearly 1 basis point to 0.92 percent, Irish 10-year bond yields traded 1/2 basis point lower at 0.96 percent, while Italian climbed 1 basis point to 2.28 percent, Netherlands 10-year bond yields remained flat at 0.76 percent, Portuguese equivalents jumped 2 basis points to 3.07 percent while the Spanish 10-year yields remained steady at 1.67 percent by 09:30 GMT.

While yesterday’s Germany factory orders figures came in softer than expected, this morning’s IP release surprised significantly on the upside, with output rising by 1.2 percent m/m and 5.0 percent y/y, the strongest annual pace since 2011. And with the exception of some weakness in the construction sector following a particularly strong performance at the start of the year, the improvement was broad based.

Meanwhile, the pan-European STOXX 600 index was down 0.55 percent to 380.89, German DAX fell 0.63 percent to 12,376.00, France’s CAC 40 slumped 0.84 percent to 5,136.25 and the PSI20 Index traded 0.80 percent lower at 5,161.57 by 09:40 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bullish at 134.34 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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