EURO GOVT-Bunds fall before German business morale data
LONDON, July 25
LONDON, July 25 (Reuters) - German Bund futures fell at the open on Thursday, as traders positioned for German business confidence data later in the day, expected to show an improvement on signs of recovery in the euro zone's largest economy.
Bunds extended the previous day's losses triggered by strong euro zone and U.S. business surveys, which suggested that future global monetary conditions could be tighter than investors previously expected.
The German IFO survey due at 0900 GMT is expected to show business morale picked up for a third consecutive month in July. Focus was also on preliminary UK gross domestic product data likely to show growth gaining traction in the second quarter.
"It's a data-driven market at the moment and it feels a bit heavy," a trader said. "The danger is we get a strong IFO number again and it continues to weigh on things. The other danger is UK GDP. Maybe there's upside risk there as well so gilts may add to the bearish sentiment."
Bund futures were last 12 ticks down at 142.60 compared with 142.72 at Wednesday's settlement.