German bunds narrowly mixed after July retail sales disappoint, eurozone August CPI meets estimates

The German bunds remained narrowly mixed during European trading session Friday after the country’s retail sales for the month of July disappointed market participants, while eurozone’s consumer price inflation (CPI) for August remained unchanged, leading to sideways trading in the debt market.  

The German 10-year bond yield, which move inversely to its price, slipped nearly 1 basis point to -0.699 percent, the yield on 30-year note edged tad up to -0.208 percent while the yield on short-term 2-year traded steady at -0.907 percent by 11:10GMT.

According to provisional results of the Federal Statistical Office (Destatis), the retail companies in Germany implemented 4.4 percent in real terms (price adjusted) and 5.4 percent more nominally (not price adjusted) in July 2019 than in July 2018 27 sales days a sales day more than the July 2018.

Euro area annual inflation is expected to be 1.0 percent in August 2019, stable compared to July according to a flash estimate from Eurostat, the statistical office of the European Union.

Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in August (2.1 percent, compared with 1.9 percent in July), followed by services (1.3 percent, compared with 1.2 percent in July), non-energy industrial goods (0.4 percent, stable compared with July) and energy (-0.6 percent, compared with 0.5 percent in July).

Meanwhile, the German DAX surged 1.20 percent to trade at 11,981.93 by 11:15GMT.