The Eurozone periphery bonds remained narrowly mixed Friday as investors remain muted in any trading activity on the lack of significant economic data.
The benchmark German 10-year bond yields, which moves inversely to its price, hovered around 0.45 percent, the French 10-year bond yields also climbed nearly 1 basis point higher to 0.73 percent, Irish 10-year bond yields slipped nearly 1 basis point to 0.74 percent, Italian up around 1 basis point to 1.99 percent, Netherlands 10-year bond yields flat at 0.57 percent, Portuguese equivalents jumped 4-1/2 basis points to 2.88 percent and the Spanish 10-year yields remained steady at 1.44 percent by 09:30GMT.
A quiet end of the working week brings only a few second-tier data releases. This morning we have already seen the release of German factory orders, which showed a second consecutive monthly increase of around 1.0 percent m/m in June to leave the annual pace at 5.1 percent y/y, the highest since last December. The details suggested that domestic demand was the main source of growth, while foreign orders fell by 2.0 percent.
Looking through the monthly volatility, on a three-month on three-month basis total orders increased for the first time in five months, by 0.8 percent. Meanwhile, Spanish industrial output figures, also released this morning, showed that production fell by 0.1 percent m/m in June. However, the previous month saw a 1.4 percent m/m rise, which was the steepest since last November, and so the overall Spanish industrial growth in Q2 2017 was 0.6 percent q/q, a pace last seen in Q3 2016.
Meanwhile, the pan-European STOXX 600 index remained flat at 378.98, German DAX rose 0.25 percent to 12,184.50, France’s CAC 40 also up 0.25 percent to 5,141.50 and the PSI20 Index traded 0.28 percent higher at 5,194.06 by 09:30 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bullish at 128.79 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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