The German bunds slumped during European session Thursday after Eurozone’s consumer price inflation (CPI) for the month of May beat market expectations, besides, the cooling down of Italy’s political situation.
The German 10-year bond yields, which move inversely to its price, jumped 3-1/2 basis points to 0.38 percent, the yield on the 30-year note rose nearly 1 basis point to 1.09 percent and the yield on short-term 2-year traded 2-1/2 years higher at -0.66 percent by 09:40GMT.
Euro area annual inflation is expected to be 1.9 percent in May 2018, up from 1.2 percent in April 2018, according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in May (6.1 percent, compared with 2.6 percent in April), followed by food, alcohol & tobacco (2.6 percent, compared with 2.4 percent in April), services (1.6 percent, compared with 1.0 percent in April) and non-energy industrial goods (0.2 percent, compared with 0.3 percent in April).
Meanwhile, the German DAX slipped 0.38 percent to 12,735.78 by 09:40GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained slightly bullish at 95.53 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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