The German 10-year bund yields hit its lowest since December 30 last year on Tuesday as investors poured into safe-haven assets ahead of the Eurozone’s final reading of the consumer price inflation (CPI) for the month of March, scheduled to be released on April 19.
The yield on the benchmark 10-year bond, which moves inversely to its price, slumped nearly 2 basis points to 0.17 percent, the long-term 30-year bond yields plunged 1-1/2 basis points to 0.91 percent and the yield on short-term 2-year bond also traded nearly 1-1/2 basis points lower at -0.86 percent by 08:30 GMT.
The Eurozone flash CPI inflation reading declined to 1.5 percent for March, from 2.0 percent in February. This was significantly below market expectations of a 1.8 percent increase and the lowest reading for three months.
The core inflation reading also declined to 0.7 percent from 0.9 percent previously and was below expectations of a smaller decline to 0.8 percent. The core rate was 1.0 percent for March 2016, illustrating that overall inflationary pressure has been subdued.
Meanwhile, the German stock index DAX Index traded 0.34 percent lower at 12,068.50 by 08:50 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bullish at 102.02 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
