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German bunds continue to slump ahead of Eurozone September CPI, ECB President Draghi’s speech

The German government bunds continue on a downtrend Thursday as investors wait to watch the release of eurozone’s consumer price-led inflation index for the month of September, due on September 29 by 09:00GMT. Also, the European Central Bank Governor Mario Draghi is scheduled to deliver a keynote speech on the same day, which will add further direction to the deb market.

The German 10-year bond yields, which moves inversely to its price, jumped nearly 2-1/2 basis points to 0.49 percent, the yield on 30-year note also surged 2-1/2 basis points to 1.29 percent and the yield on short-term 2-year traded 1-1/2 basis points higher at -0.68 percent by 08:10GMT.

After a weaker showing in yesterday’s French consumer confidence survey, the findings from Germany’s latest GfK consumer confidence survey released this morning were also a touch softer than expected. In contrast to expectations of a further increase from the sixteen-year high reached in the previous survey, the headline confidence index fell for the first time since April, albeit by the smallest of margins, just 0.1pt  to 10.8.

Within the detail, however, consumer expectations for their future incomes slipped to the lowest level in six months, while the index for willingness to buy was also weaker, albeit remaining well within its recent range.

Meanwhile, the German DAX traded 0.21 percent higher at 12,683.50 by 08:15 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -60.96 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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