German bunds tad lower after investors shrug-off lower-than-expected April services PMI, Eurozone March retail sales

The German bunds traded tad lower during European session Friday as investors have largely shrugged-off the lower-than-expected services PMI for the month of April, besides the fall in eurozone’s retail sales for the month of March, released today.

The German 10-year bond yields, which move inversely to its price, rose nearly 1 basis point to 0.53 percent, the yield on 30-year note also climbed close to 1 basis point to 1.22 percent and the yield on short-term 2-year traded tad higher at -0.56 percent by 09:40GMT.

The seasonally adjusted final IHS Markit Germany Services PMI Business Activity Index registered 53.0 in April, down from 53.9 in March (and a preliminary ‘flash’ estimate of 54.1) and its lowest since September 2016. The index has been above the 50.0 level that separates expansion from contraction for almost five years, recording an average of 54.3 over this period.

Further, eurozone’s retail sales for the month of March, failed to meet market expectations, coming in at 0.1 percent m/m, vs consensus estimates of 0.5 percent m/m, from 0.3 percent m/m in February, revised higher from 0.1 percent m/m.

Meanwhile, the German DAX traded 0.34 percent higher at 12,733.67 by 09:50GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -40.07 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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