German bunds trade slightly lower after Eurozone October CPI meets market expectations

The German bunds traded slightly lower during afternoon session on the last trading day of the week Friday after the Eurozone’s consumer price inflation (CPI) for the month of Eurozone met market expectations, remaining unchanged from that in September.

The German 10-year bond yields, which move inversely to its price, rose nearly 1-1/2 basis points to 0.370 percent, the yield on 30-year note edged nearly 1 basis point higher to 1.039 percent and the yield on short-term 2-year too traded tad higher at -0.654 percent by 10:00GMT.

The euro area annual inflation rate was 2.2 percent in October 2018, up from 2.1 percent in September 2018. A year earlier, the rate was 1.4 percent. European Union annual inflation was also 2.2 percent in October 2018, up from 2.1 percent in September 2018. A year earlier, the rate was 1.7 percent, according to figures published by Eurostat, the statistical office of the European Union.

In October 2018, the highest contribution to the annual euro area inflation rate came from energy (+1.02 percentage points, pp), followed by services (+0.65 pp), food, alcohol & tobacco (+0.42 pp) and non-energy industrial goods (+0.11 pp).

Meanwhile, the German DAX remained 0.48 percent higher at 11,408.32 by 10:10GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 70.88 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex