Daiwa Comments on Tuesday's Germany Bunds, U.K. Gilts

12:24 PM EST, 01/13/2026 (MT Newswires) -- German Bunds followed United States Treasuries higher after the release of December U.S. consumer price index data to close the day little changed on a relatively quiet Tuesday for eurozone economic news, said Daiwa Capital Markets.

Wednesday will bring a brief pause to the eurozone economic dataflow, noted the bank. On Thursday, eurozone industrial production (IP) and goods trade data for November will be of most interest.

With solid IP growth across Germany (1.1% month over month), Spain (1% month over month) and Ireland (1.4% month over month) -- collectively a little more than half of aggregate industrial output in the single currency area -- eurozone production looks set for another month of solid expansion in November, stated Daiwa.

The bank expects growth of at least 0.5% month over month, to leave IP in the first two months of Q4 trending 0.75%-1% above its level in Q3. On the other hand, goods trade data from the member states seem likely to imply a slightly narrower trade surplus in November, principally reflecting the higher value of imports following a dip in October.

Meanwhile, Thursday will also bring the first full-year estimate of German gross domestic product growth in 2025. Following a contraction of 0.5% year over year in 2024, Daiwa sees growth to have been modestly positive last year (0.2% year over year). The release will also give a preliminary view of GDP growth in Q4 -- which was likely positive for Q1 since Q125 -- ahead of a first official estimate later this month, pointed out the bank.

Gilts made modest losses on Tuesday while a United Kingdom retail survey suggested that demand remained subdued in the run-up to Christmas, added Daiwa.

In the absence of economic data, Wednesday will at least bring a further smattering of Bank of England speak, according to Daiwa. But with Deputy Governor Dave Ramsden likely to focus on the BoE's bank resolution regime, and the monetary policy views of the more-dovish policymaker Alan Taylor currently among the less decisive for upcoming policy decisions, Wednesday should still be a relatively quiet day ahead for U.K. economic news.

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