German yields rise on optimistic Bundesbank growth forecasts

FXStreet (Mumbai) - The yields on the German Bund yields ticked higher on Friday after Bundesbank revised its German GDP forecast for 2015 higher to 1.7% from 1.1%.

The 10-year yield rose 3.4 basis points to 0.866%, while the 30-year yield rose 5.2 basis points to 1.506%. The benchmark 10-year yield had clocked a high of 0.998%, before falling back to 0.83%.

2016 GDP forecast was also revised higher to 1.8% from 1.6%. Meanwhile, the 2015 HICP was revised lower to 0.5% in 2015 from 1.1%. HICP is seen at 1.8% in 2016 and 2.2% in 2017. Inflation ex-energy seen at 2.2% in 2017.

The rise in the yields has been capped to some extend after Greece delayed its EUR 300 million loan repayment to the IMF.

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