German bunds slip on optimism ahead of Eurozone February CPI data

The German bunds slipped Thursday, following optimism among investors as they prepare to watch the Eurozone’s consumer price inflation index (CPI) for the month of February, scheduled to be released on March 15 by 10:00GMT for detailed direction in the debt market.

The German 10-year bond yields, which move inversely to its price, rose 1/2 basis point to 0.59 percent, the yield on 30-year note hovered around 1.24 percent and the yield on short-term 3-year traded tad higher at -0.39 percent by 09:25GMT.

As expected, the final French inflation figures for February aligned with the flash estimates, with the EU-harmonised measure of annual CPI dropping 0.2ppt to 1.5 percent. As such, with the German and Spanish figures released earlier this week also confirming the respective preliminary figures (1.2 percent y/y in both countries), the euro area figure due tomorrow should also provide no surprises, matching the flash estimate of 1.2 percent y/y, although a slight upwards revision to core CPI (flash of 1.0 percent y/y) certainly cannot be ruled out.

Meanwhile, the German DAX rose 0.82 percent to 12,337.89 by 09:25GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -26.14 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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