German bunds jump after Eurozone September CPI ditches expectations; ECB President Draghi’s speech in focus

The German government bunds jumped Friday after eurozone’s consumer price-led inflation index for the month of September, ditched market expectations. Also, the European Central Bank Governor Mario Draghi is scheduled to deliver a keynote speech later today, which will add further direction to the deb market.

The German 10-year bond yields, which moves inversely to its price, slumped nearly 3 basis points to 0.45 percent, the yield on 30-year note also plunged 3 basis points to 1.25 percent and the yield on short-term 2-year traded flat at -0.69 percent by 09:45GMT.

Eurozone inflation rose at an annual rate of 1.5 percent in September, missing expectations and making it harder for the European Central Bank to begin normalizing negative interest rates and winding down its massive bond-buying programme.

The biggest price increases were in energy, where prices rose 3.9 percent in September, alcohol, and tobacco, up 1.9 percent, and services, up 1.5 percent. Core inflation, which excludes energy and unprocessed food prices, came in at 1.3 percent.

Meanwhile, the German DAX traded 0.26 percent higher at 12,737.75 by 09:50 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bullish at 129.25 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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