World Economy

German Gov’t Bunds Gain After Bad January

The yield on the benchmark 10-year bond fell 1 basis point to 0.30%.The yield on the benchmark 10-year bond fell 1 basis point to 0.30%.

The German government bunds gained Friday after reading the country’s worse-than-expected retail sales during the month of January. Also, investors will be looking forward to the release of a host of data next week, including Eurozone Q4 GDP and the European Central Bank’s monetary policy decision scheduled for March 9.

The yield on the benchmark 10-year bond, which moves inversely to its price, fell 1 basis point to 0.30%, the long-term 30-year bond yields also slipped 1/2 basis point to 1.11% while the yield on short-term 1-year bond moved lower by over 1 basis point to -0.84%, EconoTimes reported.

German retail sales fell unexpectedly by 0.8% on the month in real terms in January, data released by the Federal Statistics Office showed on Friday. The January figure came in sharp contrast to a Reuters consensus forecast for a 0.2% rise. However, on the year, retail sales edged up by 2.3% in real terms, the data showed.

Meanwhile, the German stock index DAX Index traded 0.43% lower at 12,0005.50, the FxWirePro’s Hourly Euro Strength Index remained neutral at 66.57 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend).


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