German bunds narrowly mixed ahead of 10-year auction, Trump’s press conference in focus

The German bunds traded narrowly mixed Wednesday ahead of the 10-year auction scheduled later in the day. Also, the United States President-elect Donald Trump’s news conference later in the day will provide further clarity on market movements. This would be the first public appearance after winning the 2016 Presidential elections on November 8.

The bund auction line up for today is expected to shower sufficient demand with yields rising to decent levels compared to that during the pre-November auction.

We foresee that bond prices will keep drifting between small gains and losses ahead of the European Central Bank monetary policy meeting, which is scheduled to take place on January 19.

The yield on the benchmark 10-year bond, which moves inversely to its price, fell nearly 1 basis point to 0.28 percent, the long-term 30-year bond yields also dipped close to 1 basis point to 1.04 percent while the yield on short-term 2-year bond rose almost 1 basis point to -0.72 percent by 09:25 GMT.

Meanwhile, the German stock index DAX Index traded 0.05 percent higher at 11,589.00  by 09:35 GMT, while at 9:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -32.74 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex