German bunds fall ahead of Eurozone’s Q1 GDP, April consumer inflation

The German bunds fell Monday as investors wait to watch the Eurozone’s first quarter gross domestic product (GDP) and April consumer price inflation (CPI), scheduled to be released on May 16 and 17 respectively. Also, Germany’s 30-year bund auction, due on late Wednesday will provide detailed direction in the debt market.

The yield on the benchmark 10-year bond, which moves inversely to its price, climbed 1-1/2 basis points to 0.41 percent, the long-term 30-year bond yields jumped 2-1/2 basis points to 1.22 percent and the yield on the short-term 1-year bond traded 1-1/2 basis points higher at -0.68 percent by 08:20 GMT.

The German economy picked up speed in the first quarter of 2017, driven by higher investment in construction, machinery and equipment, robust household and state spending as well as strong exports, the Federal Statistics Office said on Friday.

Europe's biggest economy grew by 0.6 percent on the quarter in the January-March period after 0.4 percent in the final three months of 2016, the data showed. This was in line with the consensus forecast in a Reuters poll and the strongest quarterly growth rate since the first quarter of 2016 when the economy expanded by 0.7 percent.

Meanwhile, the German stock index DAX Index traded flat at 12,764.25 by 08:50 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained slightly bullish at 98.00 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex