The German bunds traded flat Monday as investors remained side-lined in any major trading activity amid a muted session that witnessed data of little economic significance ahead of the country’s ZEW economic sentiment index for March, scheduled to be released on March 13 by 10:00GMT. Also, European Central Bank (ECB) President Mario Draghi is due to deliver a keynote speech on March 14 by 08:00GMT for further direction in the debt market.
The German 10-year bond yields, which move inversely to its price, hovered around 0.65 percent, the yield on 30-year note flat at 1.30 percent and the yield on short-term 2-year steadied at 0.55 percent by 09:50GMT.
In a relatively quiet week for euro area data releases, speeches by top ECB officials, including Draghi, Praet, and Cœuré on Wednesday, might attract more attention than usual. Data-wise, the most notable day will also be Wednesday when we will receive euro-area industrial production figures for January alongside employment data for Q4. Meanwhile, the final euro area inflation figures for February are due on Friday.
Currently, there is no major reason to expect any revisions from the preliminary estimates of 1.2 percent y/y headline and 1.0 percent y/y core inflation, but more about the balance of risks to those figures will be seen throughout the week when the large member states release their estimates. Also notable on Friday will be Q4 labor cost data, while the day before new car registration figures will indicate whether the autos market remained buoyant in February.
In the markets, Italy will sell a range of bonds tomorrow, Germany will sell 30-year bonds on Wednesday, and France and Spain will sell a range of bonds on Thursday.
Meanwhile, the German DAX rose 0.62 percent to 12,424.14 by 09:55GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -56.04 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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