German bunds remain steady after June manufacturing PMI edges higher, jobless rate unchanged

The German bunds remained steady during European trading session Monday after the country’s manufacturing PMI for the month of June edged slightly higher, albeit retaining its contraction mode, coupled with tad lower unemployment change for the similar period.

However, Germany’s jobless rate remained unchanged, while the eurozone counterpart witnessed a fall, offsetting net impact on safe-haven assets.

The German 10-year bond yields, which move inversely to its price, hovered around -0.325 percent, the yield on 30-year note gained 1-1/2 basis points to 0.280 percent and the yield on short-term 2-year too tad higher at -0.728 percent by 10:30GMT.

The headline IHS Markit/BME Germany Manufacturing PMI – a single-figure snapshot of the performance of the manufacturing economy – showed a deterioration in overall business conditions for the sixth month in a row in June. At 45.0, up from 44.3 in May, the index was at a four-month high, but still well below the neutral 50.0 mark and close to its lowest since 2012.

The number of unemployed people in Germany fell by 1,000 in June, compared to a rise of 60,000 in May, while unemployment rate remained unchanged at 5 percent, according to data released by the Federal Employment Agency.

Meanwhile, the German DAX traded 1.33 percent higher at 12,563.43 by 10:40GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 47.04 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex