German bunds narrowly mixed in quiet trading session; investors await Q1 GDP data

The German bunds traded narrowly mixed Friday as investors remained sidelined in a silent trading session that lacked data of economic significance. However, investors remain focused to watch the country’s first-quarter gross domestic product (GDP) data, scheduled to be released on May 23 for further direction in the debt market.

The yield on the benchmark 10-year bond, which moves inversely to its price, fell nearly 1 basis point to 0.35 percent, the long-term 30-year bond yields remained flat at 1.18 percent and the yield on short-term 2-year bond also traded nearly 1 basis point lower at -0.69 percent by 08:30 GMT.

The latest final Eurozone CPI inflation reading for April was confirmed at 1.9 percent, in line with the flash rate, and compared with a rate of 1.5 percent the previous month. The core inflation rate was also confirmed at 1.2 percent from 0.7 percent previously with both figures in line with consensus expectations.

In addition, the overall increase for industrial goods outside the energy sector held steady at 0.3 percent. The services sector inflation rate, however, increased sharply to 1.8 percent from 1.0 percent previously and compared with a 0.9 percent recorded for April 2016.

Meanwhile, the German stock index DAX Index rose 0.43 percent to 12,640.00 by 08:40 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 66.34 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex