The German bunds slumped Tuesday after the country’s industrial production as well as trade balance for the month of November beat market expectations, also surpassing the readings in October. Now investors shall be looking forward to the 10-year bund auction, scheduled to be held on January 10 at 10:40GMT.
The German 10-year bond yields, which move inversely to its price, rose 1 basis point to 0.44 percent, the yield on the 30-year note climbed nearly 2 basis points to 1.27 percent and the yield on short-term 2-year traded nearly flat at -0.61 percent by 07:40GMT.
According to preliminary data from the Federal Statistical Office (Destatis) in November 2017, Industrial production increased by 4.3 percent in November 2017 compared to the previous month. Within the industrial sector, production of capital goods increased by 5.7 percent and consumer goods by 3.6 percent. Intermediate goods increased by 3.0 percent m/m. Outside of industry, energy production in November 2017 was 3.1 percent lower than in October 2017, with construction output up 1.5 percent.
Further, goods worth EUR116.5 billion were exported from Germany and goods worth 92.8 billion euros were imported. As reported by the Federal Statistical Office (Destatis) on the basis of preliminary results, German exports were 8.2 percent higher in November 2017 and imports 8.3 percent higher than in November 2016. Calendar and seasonally adjusted exports rose compared to the previous month October 2017 by 4.1 percent and imports by 2.3 percent.
The foreign trade balance closed in November 2017 with a surplus of EUR23.7 billion. In November 2016, the balance in the foreign trade balance was + EUR22.0 billion. Adjusted for the calendar and seasonally adjusted, the foreign trade surplus in November 2017 was EUR22.3 billion.
Meanwhile, the German DAX rose 0.36 percent to 13,367.78 by 10:15 GMT, while at 07:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bearish at -134.16 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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