EURO GOVT-Bunds little changed, investors defensive before ECB meeting

LONDON, April 30 Tue Apr 30, 2013 2:22am EDT

LONDON, April 30 (Reuters) - German Bund futures were little changed on Tuesday with investors reluctant to place big bets before a European Central Bank rate policy meeting and other key events later in the week.

Data on euro zone inflation is expected to support the case for an interest rate cut on Thursday after a release on Monday showed German annual inflation eased to its lowest level in more than two years in April.

German Bund futures were 6 ticks lower at 146.60 and trade was seen range-bound.

A Federal Reserve meeting will take place on Tuesday and Wednesday, and U.S. jobs data are due on Friday.

"People could well remain sidelined ahead of the bigger events later in the week. Despite the fact that the periphery is doing well, we are not really trading off it," one trader said.

The trader expected Cyprus's parliament to approve a bailout imposed by its EU partners without any hiccups, but some analysts were nervous about it.

"The risk of an accident is far from negligible," said Commerzbank in a research note.

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