Trump Comments and U.S. Data Leave German Bonds Little Changed

German government bonds recovered earlier losses after U.S. data largely matched expectations, with core CPI rising slightly less than expected month on month. According to Jin10, the move brought Bunds back to their pre-release trajectory after they had fallen when a spike in oil prices weighed on rates markets. The earlier oil move followed remarks by U.S. President Donald Trump, who said peace talks with Iran were taking too long and that Iran would have to “pay a price.” German bond prices, which had slipped on the oil jump, later recouped most of the decline and were roughly flat. Higher-beta European rates markets remained pressured by softer risk assets. Ten-year French government bond futures fell by more than 6 basis points, while ten-year Italian government bond futures dropped by more than 12 basis points.