The German bunds bounced on the first trading day of the week after investors largely shrugged off higher-than-expected Ifo business climate index. Also, market participants are eyeing the European Central Bank (ECB) member Peter Praet’s speech, scheduled to be held on March 28 for further limelight in the debt market.

The yield on the benchmark 10-year bond, which moves inversely to its price, slumped nearly 3-1/2 basis points to 0.38 percent, the long-term 30-year bond yields plunged nearly 4 basis points to 1.11 percent and the yield on the short-term 3-year bond traded 1 basis point lower at -0.62 percent by 08:40 GMT.

German business morale brightened unexpectedly in March, a survey showed today, suggesting company executives in Europe’s largest economy are brushing off concerns about the threat of rising protectionism. The Munich-based Ifo economic institute said its business climate index rose to 112.3 from an upwardly revised reading of 111.1 in February.

“The political uncertainties don’t affect the German economy,” Reuters reported, citing Klaus Wohlrabe, Economist, Ifo, when asked about the policies of U.S. President Donald Trump, Britain’s decision to leave the European Union and the ongoing instability in Turkey.

Lastly, traders also remain skewed to watch the release of Germany’s and Eurozone’s consumer price inflation and the former’s labor market report, scheduled for later in the week.