German bunds dive post better-than-expected Eurozone February consumer inflation

The German government bunds dived Thursday after reading the better-than-expected Eurozone consumer price inflation (CPI) during the month of February. Further, the unemployment rate remained steady, creating a mood of pessimism that offset the rise in CPI.

The yield on the benchmark 10-year bond, which moves inversely to its price, rose 1 basis point to 0.28 percent, the long-term 30-year bond yields also jumped 1 basis point to 1.09 percent while the yield on short-term 1-year bond moved higher by nearly 1 basis point to -0.83 percent by 10:10 GMT.

Inflation across the 19-country eurozone has moved above the European Central Bank’s (ECB) target for the first time in four years. Official figures released Thursday from statistics agency Eurostat show that consumer prices remained 2 percent higher in the year through February. That was up from the 1.8 percent recorded the previous month but roughly in line with market expectations.

Meanwhile, the German stock index DAX Index traded 0.11 percent lower at 12,054.00 by 10:10 GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -7.61 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex