German bunds gain despite upbeat ZEW (Centre for European Economic Research) economic sentiment; eyes on January manufacturing PMI
Source: FxWire Pro - Commentary / 23 Jan 2018 06:07:07 Eastern Standard Time
The German bunds gained Tuesday as investors have largely shrugged off the country’s ZEW economic sentiment which rose more than expected in January, while the current conditions index hit a record high, bolstering optimism over the strength of the motor of the eurozone economy, industry data showed on Tuesday.
The German 10-year bond yields, which move inversely to its price, fell 1 basis point to 0.55 percent, the yield on 30-year note also slipped 1 basis point to 1.29 percent and the yield on short-term 2-year hovered around -0.59 percent by 10:50GMT.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment rose to 20.4 this month from December’s reading of 17.4. Analysts had expected the index to increase to 17.8 in January. On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism.
Additionally, the current conditions Index rose to 95.2 this month from 89.3 in December. That compared to expectations for a smaller increase to 89.8 and was the highest level since the survey begun to be elaborated in December 1991. Lastly, the index of eurozone economic sentiment increased to 31.8 in January from 29.0 a month earlier. The consensus was looking the index to rise to 29.7.
Meanwhile, the German DAX rose 0.79 percent to 13,568.50 by 10:50 GMT, while at 10:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -49.53 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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