The German bunds gained Friday after Eurozone’s consumer price inflation index (CPI) for the month of February failed to meet market expectations, thus boosting safe-haven demand.
The German 10-year bond yields, which move inversely to its price, slumped nearly 1-1/2 basis points to 0.56 percent, the yield on 30-year note plunged 2 basis points to 1.21 percent and the yield on short-term 2-year traded flat at -0.57 percent by 10:20GMT.
Eurozone’s final estimate of HICP inflation for the month of February is revised down to 1.1 percent y/y from 1.2 percent previously recorded and compares with 1.3 percent y/y in January. The latest reading occurs on the back of a 0.2 percent m/m climb but the core annual rate - which excludes unprocessed foods and energy - is left intact at its preliminary reading of 1.2 percent y/y, same as in January.
Meanwhile, the German DAX rose 0.31 percent to 12,384.25 by 10:20GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -2.80 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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