German bunds jump ahead of ECB President Draghi’s speech, 30-year auction

The German bunds jumped during European session Monday ahead of the European Central Bank (ECB) President Mario Draghi’s speech, scheduled to be held later today and the 30-year auction, due to be held later in the week.

The German 10-year bond yields, which move inversely to its price, fell 1 basis point to 0.39 percent, the yield on 30-year note remained tad lower at 1.16 percent and the yield on short-term 3-year too slipped slightly to -0.54 percent by 09:00GMT.

The euro area’s main event in the coming week will be the aforementioned ECB Sintra Forum on Central Banking (its equivalent to the Fed’s Jackson Hole Symposium) from this evening through to Wednesday. The main theme is price- and wage-setting. Draghi will offer opening remarks this evening, give the introductory speech tomorrow morning, and participate on that ‘policy panel’ with Fed Chair Powell, BoJ Governor Kuroda, and RBA Governor Lowe on Wednesday.

Data-wise, the most notable new releases are due at the end of the week, with the Commission flash estimate of consumer confidence in June out on Thursday and the flash PMIs for June due Friday. After the euro area composite PMI fell in May to 54.1, the lowest since November 2016, the June figures will be watched for hints of an improvement, perhaps more in hope than expectation.

Other data due in the coming week will largely be of second-tier importance, but include euro area construction output for April and the balance of payments for the same month (both tomorrow), and the French INSEE business sentiment survey for June (Thursday).  

Meanwhile, the German DAX fell 0.92 percent to 12,891.24 by 09:30GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -49.03 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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