German bunds trade mixed ahead of Q4 GDP, January CPI data

The German government bunds traded mixed Friday as investors eye the release of fourth-quarter gross domestic product (GDP) and consumer price inflation data, scheduled to be released on February 14.

The yield on the benchmark 10-year bond, which moves inversely to its price, rose 1 basis point to 0.32 percent, the long-term 30-year bond yields also rose 1-1/2 basis points to 1.08 percent while the yield on short-term 2-year bond moved lower by nearly 1 basis point to -0.78 percent by 09:20 GMT.

Further, the German bunds have been closely following developments in oil markets because of their impact on inflation expectations. The International benchmark Brent futures moved higher 1.17 percent to USD56.27 and West Texas Intermediate (WTI) rose 0.79 percent to USD53.42 by 09:20 GMT.

Moreover, Germany’s exports climbed 1.2 percent last year to EUR1.2 trillion (USD1.3 trillion), the Federal Statistics Office in Wiesbaden reported on Thursday, while imports rose 0.6 percent to EUR954.6 billion. That left Germany’s trade surplus at EUR253 billion in 2016.

Weaker output in manufacturing and construction drove the biggest monthly drop in German industrial production in nearly eight years, data showed on Tuesday. Industrial output fell by 3.0 percent on the month, data from the Economy Ministry showed. This was much weaker than the consensus forecast in a Reuters poll for a rise of 0.3 percent and the steepest drop since January 2009.

Meanwhile, the German stock index DAX Index traded 0.45 percent higher at 11,695.00 by 09:20 GMT, while at 9:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -28.36 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex