German bunds slump tracking eurozone’s better-than-expected February industrial production data

The German bunds slumped during European trading session Friday tracking eurozone’s better-than-expected industrial production data for the month of February, released early today 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, jumped 2-1/2 basis points to 0.021 percent, the yield on 30-year note climbed 3 basis points to 0.669 percent and the yield on short-term 2-year traded nearly 1 basis point higher at -0.591 percent by 09:35GMT.

The European Union’s statistics office Eurostat said on Friday that production in the 19 countries sharing the euro fell by 0.2 percent in February and by 0.3 percent year-on-year. Economists polled by Reuters had expected a 0.6 percent monthly decrease and a 1.0 percent annual drop.

The figures for January were also revised up to a 1.9 percent month-on-month increase from 1.4 percent and to a 0.7 percent year-on-year decline from a previous negative of 1.1 percent, Reuters reported.

Meanwhile, the German DAX rose 0.60 percent to 12,005.44 by 09:45GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bullish at 134.47 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex