German bunds plunge on caution ahead of September employment report, Eurozone CPI

The German government bunds plunged Wednesday as investors wait to watch the release of the country’s employment report for the month of September, scheduled to be released on September 29. Also, eurozone’s consumer price-led inflation index for the month of September, due on the same day by 09:00GMT will add further direction to the deb market.

The German 10-year bond yields, which moves inversely to its price, jumped over 6-1/2 basis points to 0.48 percent, the yield on 30-year note hovered surged nearly 7 basis points to 1.27 percent and the yield on short-term 2-year traded 2-1/2 basis points higher at -0.68 percent by 09:20GMT.

While yesterday brought another upbeat French business sentiment survey, today’s consumer confidence survey results from the euro area’s second-largest member state were somewhat less encouraging, with the headline INSEE indicator declining for a third consecutive month in September to 101, the lowest level since April and only slightly above its long-term average.

According to this survey, consumers assessed that their personal financial situation has deteriorated, and also took a less optimistic view on how that is likely to evolve over the coming twelve months. Perhaps not unrelated to the fact that President Macron was able to last week sign into law his reforms to introduce greater flexibility in the labor market, the survey suggested that household fears of unemployment rose notably, albeit still remaining significantly below the long-term average.

Meanwhile, the German DAX traded 0.55 percent higher at 12,674.00 by 09:20 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -122.93 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest