The German government bunds plunged Wednesday, following expectations of a rebound in the country’s consumer price inflation (CPI), scheduled to be released later in the day. Also, investors are eyeing the release of February unemployment data.
The yield on the benchmark 10-year bond, which moves inversely to its price, jumped 2-1/2 basis points to 0.23 percent, the long-term 30-year bond yields also jumped nearly 3 basis points to 1.02 percent while the yield on short-term 2-year bond moved higher by nearly 1 basis point to -0.89 percent by 08:00 GMT.
Further, eurozone’s February CPI and jobless rate are also being eyed by market participants, scheduled for release on March 2. Also, today’s 10-year auction will be cautiously observed for further direction in the debt market.
Meanwhile, the German stock index DAX Index traded 1.00 percent higher at 11,957.50 by 08:20 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -49.88 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
