The German bunds slipped during European trading session Thursday tracking a slight rebound in the United States Treasury yields and a comeback in global stock indices, amid an otherwise muted trading session that witnessed data of little economic significance.
The German 10-year bond yields, which move inversely to its price, edged nearly 1 basis point higher to -0.167 percent, the yield on 30-year note rose 1-1/2 basis points to 0.481 percent and the yield on short-term 2-year traded flat at -0.645 percent by 10:10GMT.
"We have already seen the only economic data released out of the euro area today, with Spanish inflation and retail sales figures both falling short of expectations. In particular, coming on the back of a softer French inflation release yesterday, the flash harmonised CPI estimate from Spain declined 0.7ppt to 0.9 percent y/y in May, the weakest rate since January 2018. An even larger drop of 0.9ppt was recorded in the national measure, to just 0.8 percent y/y. And while this weakness was reportedly principally driven by a decline in electricity prices, underlying inflationary pressures are likely to have remained very subdued this month too," Daiwa Capital Markets reported.
There was also an unexpected decline in Spain’s retail sales in April, with the 0.4 percent m/m drop leaving the annual increase moderating to just 1.1 percent y/y, down from a near-3 percent y/y rise previously and the weakest reading since October 2017.
And when excluding sales at petrol stations, spending was down a steeper 0.6 percent m/m. Overall, however, the weakness at the start of Q2 followed solid increases since the start of the year, to leave sales still up 1/2 percent 3m/3m in April, the report added.
Meanwhile, the German DAX traded tad 0.58 percent higher to trade at 11,905.23 by 10:15GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -57.42 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex


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