German bunds climb after Eurozone’s September CPI remains unchanged; EU Leaders’ Summit eyed

The German bunds climbed during European session Wednesday after the eurozone’s consumer price inflation (CPI) for the month of September, released today, remained unchanged, meeting market expectations as well. Investors will now be eyeing the European Union’s (EU) Leaders’ Summit, due to be held on October 18 for further direction in the debt market.

The German 10-year bond yields, which move inversely to its price, fell 1-1/2 basis points to 0.474 percent, the yield on 30-year note edged 1 basis point lower at 1.111 percent and the yield on short-term 2-year too traded nearly 1 basis point lower at -0.607 percent by 09:20GMT.

The Euro area annual inflation rate was 2.1 percent in September 2018, up from 2.0 percent in August. A year earlier, the rate was 1.5 percent. European Union annual inflation was 2.2 percent in September 2018, stable compared to August. A year earlier, the rate was 1.8 percent. These figures are published by Eurostat, the statistical office of the European Union, data released by Eurostat showed Thursday.

The highest contribution to the annual euro area inflation rate came from energy (+0.90 percentage points), followed by services (+0.57 ppt), food, alcohol & tobacco (+0.51 ppt) and non-energy industrial goods (+0.08 ppt).

Meanwhile, the German DAX fell 0.36 percent to 11,731.86 by 09:25GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 11.98 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex