The German bunds plunged during European trading session Tuesday after the country’s manufacturing PMI for the month of September exceeded market expectations, while investors still eye the European Central Bank President (ECB) Mario Draghi’s speech, scheduled to be delivered later today for further direction in the debt market.

The German 10-year bond yield, which move inversely to its price, jumped nearly 5 basis points to -0.523 percent, the yield on 30-year note surged nearly 6 basis points to -0.040 percent while the yield on short-term 2-year traded tad up at -0.746 percent by 10:20GMT. Germany's manufacturing sector recorded its worst performance since the depths of the global financial crisis in September, latest PMI data from IHS Markit and BME showed, as contractions in output and new orders accelerated.

Job shedding also intensified, with factory employment falling to the greatest extent for almost a decade. After accounting for seasonality, the IHS Markit Eurozone manufacturing PMI fell to 45.7, down from 47.0 in August and its lowest reading since October 2012. Latest data indicated the eighth successive month that the PMI has posted below the 50.0 no-change mark. Further, euro area annual inflation is expected to be 0.9 percent in September, down from 1.0 percent in August according to a flash estimate from Eurostat, the statistical office of the European Union. Meanwhile, the German DAX traded tad -0.09 percent down at 12,416.