FRANKFURT (dpa-AFX) - German government bond prices edged up slightly on Friday. The benchmark Euro-Bund-Future rose by 0.05 percent to 128.40 points. The yield on the ten-year federal bond stood at 2.82 percent.
Bonds received some support from weak industrial data out of Germany. Overall production declined in December for the first time in several months. Manufacturing output fell markedly, in part due to unexpectedly low production in the automotive sector. The previous day, incoming orders had delivered a positive surprise.
"Even though year-end figures are often influenced by the timing of Christmas holidays, this shows that the recently much higher orders have not yet translated into increased production, and the still subdued sentiment indicators do not point to a quick turnaround," commented Commerzbank economist Ralph Solveen. "However, we continue to expect only a very moderate recovery for industry and the entire German economy," Solveen writes.
Bonds also benefited somewhat from weakness in the stock markets. Growing doubts about large-scale investments in artificial intelligence are weighing on equities. In particular, the sharp drop in the share price of retail giant Amazon is unsettling markets. In the afternoon, consumer sentiment data from the University of Michigan in the United States could also move the markets./jsl/jkr/jha/
