German bund yields recover sternly tracking better-than-expected May employment report despite Italy’s political challenges

The German 10-year bund yields started to recover on a serious note during European session Wednesday, tracking the country’s better-than-expected employment report for the month of May despite Italy being faced with a political challenge since a week.

The German 10-year bond yields, which move inversely to its price, jumped 5-1/2 basis points to 0.32 percent, the yield on the 30-year note climbed nearly 3-1/2 basis points to 1.05 percent and the yield on short-term 2-year also traded 3-1/2 years higher at -0.74 percent by 09:00GMT.

Germany’s jobless numbers dropped more than expected in May, pushing down the unemployment rate to a record low, data showed on Wednesday, reflecting the robustness of a labor market that has become a key driver of a consumer-led upswing.

The Federal Labor Office said the seasonally adjusted jobless total fell by 11,000 to 2.358 million. That compared with an expected drop of 10,000 forecast in a Reuters poll. The unemployment rate fell to 5.2 percent in May, the Office said. That was the lowest since German reunification in 1990.

Meanwhile, the German DAX rose 0.23 percent to 12,698.46 by 09:05GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -55.75 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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