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German bond yields decline ahead of the Eurozone CPI data

FXStreet (Mumbai) - The German ten-year bond yield has erased its early morning gains ahead of the Eurozone CPI data for September due for release at 9:00 GMT.

The ten-year yield is trading at 0.750%, just a shy away from the record low of 0.724% hit yesterday. Earlier today, the yield had hit a high of 0.794%. The yields have come under pressure, off-late due to a threat of low growth and deflation in the Eurozone. The disappointing economic data out of the Germany have also pushed the bond prices higher in the Germany.

The yields may slump to new lows today, if the Final reading of the Eurozone CPI number for September prints lower than the market expectation of 0.7% growth. Moreover, the slumping energy prices are likely to curb price pressures in the Eurozone.

German Ten-year Yield Technical levels

The yield has an immediate support of 0.740% (daily low), below which yields can fall to 0.836% (record low). On the contrary, the yield may rally to 0.78% if the resistance of 0.774% is taken out.

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