German bunds remain nearly flat in lacklustre trade; ECB President Draghi’s speech in focus

The German bunds traded nearly flat Monday as investors remain sidelined in any big deal ahead of European Central Bank President Mario Draghi speech.

Also, markets were mostly quiet with little in the way of market-moving news, and with no data scheduled for release in Europe or the UK today more of the same is anticipated for the European session.

The yield on the benchmark 10-year bond, which moves inversely to its price, hovered around 0.27 percent, the yield on long-term 30-year note rose 2 basis points to 0.932 percent and the yield on short-term 3-year bond remained steady at -0.66 percent by 09:20 GMT.

Chancellor Merkel of Germany has announced that she likes being chancellor and she would like to carry on being one if that is alright with everyone. There had been a little uncertainty in the markets about whether she would be a candidate in next year's election, reported UBS in its morning note.

As to today, ECB President Mario Draghi’s testimony to the European Parliament at 16:00 GMT is the main event. The context is moderate economic growth and, importantly, no sign of any significant uplift in underlying core inflation. This supports the case for further stimulus measures to be announced next month, said Lloyds Bank in its report.

Meanwhile, the German stock index DAX Index traded 0.53 percent lower at 10,607.75 by 09:30 GMT. While at 09:00 GMT, the FxWirePro's Hourly Euro Strength Index stood neutral at +50.33 (higher than +75 represents bullish trend).