FRANKFURT (dpa-AFX) – On Tuesday, the price losses of the past few trading days did not continue on the market for German government bonds. In the morning there was a slight counter-movement. The trend-setting futures contract Euro-Bund-Future rose slightly by 0.05 percent to 151.32 points. The yield on ten-year Bunds was 1.30 percent.
Recently, a sharp increase in gas prices in Europe had increased expectations of continued high inflation, fueling speculation that the European Central Bank (ECB) would raise interest rates significantly. According to an assessment by bond experts at Commerzbank, the sharply rising energy prices were “the main driver of the sell-off” on the market for federal bonds at the beginning of the week. While the sell-off caused prices to fall, the yields on Bunds rose significantly in return.
On Tuesday, however, the price of natural gas in Europe did not rise any further for the time being. According to market observers, the interest of investors in the German bond market is likely to focus more on economic data from the eurozone over the course of the day. The program includes data on the mood of purchasing managers in August, which is expected in the morning. Sentiment is expected to deteriorate, partly because of the looming energy crisis in Europe./jkr/jha/