German bunds remain narrowly mixed as investors side-line in muted trading session

The German bunds remained narrowly mixed Friday as investors remained sidelined in any major trading activity amid a silent session that witnessed no data of major economic importance.

The German 10-year bond yields, which move inversely to its price, hovered around 0.52 percent, the yield on 30-year note slid 1-1/2 basis points to 1.33 percent and the yield on short-term 2-year traded nearly flat at -0.56 percent by 08:35GMT.

According to the European Central Bank’s (ECB) account of the monetary policy meeting, released overnight, a significant flattening of the US Treasury yield curve had been observed since the October 25-26 meeting, while the German government bond yield curve had flattened to a much lesser extent.

In the United States, the yield curve was at its flattest in almost a decade, with the ten-year Treasury bond yielding less than 60 basis points above the two-year Treasury bond, whereas at the start of 2017 the spread between the yields of the two bond maturities had been 125 basis points. 

With regard to the economic analysis, members generally agreed with the assessment of the outlook and risks for economic activity in the euro area provided by Mr. Praet in his introduction. Recent data and survey results pointed to a solid, broad-based and increasingly self-sustaining economic expansion, supported by very favorable financing conditions. 

Meanwhile, the German DAX rose 0.32 percent to 13,245.50 by 10:45 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 151.38 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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