German bunds nearly flat in muted trading session amid global economic worries

The German bunds remained nearly flat during European session Wednesday in a muted trading session that witnessed data of little economic significance amid ongoing global economic worries.

The German 10-year bond yields, which move inversely to its price, hovered around 0.248 percent, the yield on 30-year note remained tad higher at 0.867 percent and the yield on short-term 2-year remained nearly steady at -0.597 percent by 10:20GMT.

It is relatively quiet data-wise for top-tier euro area releases today, with construction output figures for October the most notable. These might well report some payback for the surge in activity (2 percent m/m) seen in this sector in September, although surveys suggest that sentiment here remains more upbeat than in manufacturing and construction, Daiwa Capital Markets reported.

Further, German PPI data for November, released this morning, showed that producer inflation remained unchanged in November at 3.3 percent y/y, the joint highest level since 2011. Energy inflation eased slightly from the peak of 9.4 percent y/y in October to 8.9 percent, but all other major categories reported a small increase.

"Looking ahead, we expect German (and euro area) PPI to decline steadily in response to falling global oil prices," the report commented.

Meanwhile, the German DAX rose 0.45 percent to 10,789.48 by 10:30GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -3.95 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex