German bunds flat after Eurozone September CPI slips slightly, trade balance lower than estimates

The German bunds remained flat during European session Wednesday after the eurozone’s consumer price inflation (CPI) for the month of September, slipped slightly, falling short of market expectations as well. Also, eurozone’s trade balance remained subdued for the similar period, but failed to create any major economic impact on the debt market.

The German 10-year bond yield, which move inversely to its price, hovered around -0.425 percent, the yield on 30-year note also remained flat at 0.079 percent and the yield on short-term 2-year remained tad down at -0.692 percent by 10:50GMT.

The euro area annual inflation rate was 0.8 percent in September, down from 1.0 percent in August. A year earlier the rate was 2.1 percent. European Union annual inflation was 1.2 percent in September 2019, down from 1.4 percent in August. A year earlier, the rate was 2.2 percent. These figures are published by Eurostat, the statistical office of the European Union.

The lowest annual rates were registered in Cyprus (-0.5 percent), Portugal (-0.3 percent), Greece, Spain and Italy (all 0.2 percent). The highest annual rates were recorded in Romania (3.5 percent), Slovakia (3.0 percent) and Hungary (2.9 percent).

Compared with August, annual inflation fell in twenty Member States, remained stable in five and rose in two. In September, the highest contribution to the annual euro area inflation rate came from services (+0.66 percentage points, pp), followed by food, alcohol & tobacco (+0.29 pp), non-energy industrial goods (+0.06 pp) and energy (-0.18 pp).

Meanwhile, the German DAX gained 0.20 percent to 12,656.10 by 10:55GMT.