German bunds climb in silent trading hours ahead of Eurozone Q3 GDP

The German bunds climbed during European session Thursday amid silent trading hours as investors wait to watch the Eurozone’s gross domestic product (GDP) for the third quarter of this year, scheduled to be released on December 7 by 10:00GMT for further direction in the debt market.

The German 10-year bond yields, which move inversely to its price, fell nearly 2 basis points to 0.258 percent, the yield on 30-year note also suffered 2 basis points to 0.908 percent and the yield on short-term 2-year traded a tad lower at -0.609 percent by 09:40GMT.

Following the seemingly relentless run of disappointing economic data and business sentiment surveys out of the euro area in recent weeks, this morning’s German factory orders figures provided some welcome relief. Total orders rose 0.3 percent m/m in October. Following five negative readings in the first six months of the year, that represented a third consecutive increase.

Admittedly, domestic orders were disappointing, down by more than 3 percent m/m. So, the pickup was driven by foreign demand, in particular – and perhaps surprisingly – from other euro area member states, from which orders rose more than 7 percent m/m. As a result, total orders in October rose more than 1 percent above the average level in Q3, strongly suggesting the likelihood of a return to growth in the sector in the fourth quarter, Daiwa Capital Markets reported.

Meanwhile, the German DAX slumped 2.29 percent to 10,942.61 by 09:45GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -49.73 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex