German bunds tad higher in silent trading hours ahead of October GfK consumer climate index

The German bunds traded tad higher during European trading session Wednesday amid silent trading hours that witnessed data of little economic significance ahead of the country’s GfK consumer climate index for the month of October, scheduled to be released on September 26 by 06:00GMT for further direction in the debt market.

The German 10-year bond yield, which move inversely to its price, slipped nearly 1 basis point to -0.611 percent, the yield on 30-year note suffered 1-1/2 basis points to -0.167 percent and the yield on short-term 2-year remained flat at -0.708 percent by 10:45GMT.

In the euro area, today’s most noteworthy release has been the latest French consumer confidence survey surprising on the upside in September. In particular, the headline index increased for the ninth consecutive month to 104, firmly above its long-run average and the highest since January 2018, Daiwa Capital Markets reported.

And with consumers more upbeat about their future financial situation, and more at ease about the unemployment outlook, the share of households considering it is a suitable time to make major purchases over the coming twelve months increased slightly in September to its highest in sixteen months, the report added.

"Therefore, today’s survey supports our view that household consumption remained supportive to French GDP growth in Q3, and will likely continue to do so in Q4," Daiwa further commented in the report.

Meanwhile, the German DAX suffered -1.15 percent to 12,164.67 by 10:50GMT.