German bunds mixed after June services PMI edge tad up; eyes on eurozone May retail sales

The German bunds remained mixed during European session Wednesday after the country’s services PMI for the month of June edged tad higher, while investors still eye the eurozone’s retail sales for the month of May, due for release on July 4 by 09:00GMT, for further direction in the debt market.

The German 10-year bond yields, which move inversely to its price, hovered around -0.352 percent, the yield on 30-year note jumped 2-1/2 basis points to 0.268 percent and the yield on short-term 2-year remained flat at -0.748 percent by 11:00GMT.

June saw the headline seasonally adjusted IHS Markit Germany Services PMI Business Activity Index tick up to a nine-month high of 55.8, from 55.4 in May. The result completed the strongest quarterly growth performance since Q3 2014.

After accounting for seasonal factors, the HIS Markit Eurozone PMI Composite Output Index strengthened to 52.2, up from 51.8 in May (and slightly better than the earlier flash reading of 52.1). June’s PMI reading was also the highest recorded since November 2018, signalling a pick-up in economic growth of the single currency area.

Meanwhile, the German DAX traded 0.72 percent higher at 12,616.97 by 11:05GMT, while at 11:00GMT, the FxWirePro's Hourly Euro Strength Index remained slightly bullish at 99.99 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex