FRANKFURT (dpa-AFX) – German government bonds moved only a little by midday on Wednesday. Most recently, the trend-setting futures contract Euro-Bund-Future rose slightly by 0.07 percent to 151.73 points. The yield on ten-year Bunds fell to 1.11 percent.
Market observers spoke of a slight counter-movement to the significant price losses on the previous day. The bond market is currently suffering from the fact that the high inflationary pressure in the euro zone driving expectations of future interest rate hikes by the European Central Bank (ECB). On Tuesday, the Eurostat statistics office reported the highest inflation rate in the currency area since the introduction of the euro, at 8.1 percent.
Sentiment data from the industry moved the courses little. The S&P Global Purchasing Managers’ Index fell to its lowest level in a year and a half in May. The industry has long suffered from a variety of problems, including significant delivery problems due to the Ukraine war and China’s harsh corona policy.
In the afternoon, market participants are likely to take a look at the ISM industrial index from the USA. The number is considered a reliable guideline for economic development in the world’s largest economy. A deterioration in mood is expected./bgf/la/stk