German bunds mixed in muted session ahead of January GfK consumer climate index

The German bunds remained mixed during European session Thursday amid a silent trading day that witnessed data of little economic significance ahead of the country’s GfK consumer climate index for the month of January, scheduled to be released on December 20 by 07:00GMT.

The German 10-year bond yield, which move inversely to its price, jumped 3 basis points to 0.221 percent, the yield on 30-year note also surged nearly 3 basis points to 0.302 percent while the yield on short-term 2-year slipped 1 basis point to -0.633 percent by 10:25GMT.

Broadly in line with the findings of the flash PMIs released at the start of the week, this morning’s INSEE survey results suggested that French business conditions have been broadly stable so far in December. Most striking perhaps, the survey pointed to a notable improvement in retail sector conditions to the best so far this year – jarring with anecdotes of a possible hit to spending from the pension-reform protests – with firms reporting improved sales and improved orders, Daiwa Capital Markets reported.

Like the flash PMIs, the survey also suggested an improvement in services, while conditions in manufacturing and construction were also judged to be stable. Less positively, however, the survey suggested a deterioration in the employment climate, although it still pointed to ongoing jobs growth, the report added.

Elsewhere, ECB Chief Economist Philip Lane will chair a panel at an ECB conference on fiscal policy and EMU governance, Daiwa further noted in the report.

Meanwhile, the German DAX edged tad -0.38 percent lower to 13,173.66 by 10:30GMT.