German bonds: German price gains – US data support By dpa-AFX

FRANKFURT (dpa-AFX) – The prices of German government bonds rose again significantly on Wednesday. The trend-setting futures contract rose by 0.47 percent to 134.56 points by the afternoon. The fell to 2.21 percent.

The bonds were supported by weak data from the US labor market. The number of job vacancies in the US fell in July to its lowest level since January 2021. The data indicates a slowdown in the US labor market. A weaker labor market could reduce wage pressure and thus make it easier for the US Federal Reserve to fight inflation.

The government's monthly labor market report will be published on Friday. Recently, a series of economic data had signaled an economic slowdown. The Fed's interest rate decision in two weeks is expected to be the first cut in years. However, Fed officials had made the size of the step dependent on the development of the economic data.

In the Eurozone, the European Central Bank will decide on its interest rates next week. Bundesbank President Joachim Nagel did not want to commit himself to a rate cut. “We are still not on autopilot,” Nagel told the “Frankfurter Allgemeine Zeitung”. “But I will say this: I see inflation on the right track.” The financial markets are firmly expecting another rate cut.