Emerging market tensions push German Bunds higher
LONDON Jan 30 (Reuters) - German Bund futures rose on Thursday as renewed strains in emerging markets after weak Chinese manufacturing data and the Federal Reserve scaling back its monetary stimulus spurred investors to buy low-risk bonds.
An important gauge of Chinese manufacturing slipped to a six-month low for January prompting investors already nervous about a fragile global economic recovery to cut exposure to riskier assets.
"China's PMI was a bit softer and, combined with the fun and games we had yesterday in emerging markets, risk traded heavily overnight. The (Bund) market doesn't feel particularly long so presumably things are going to remain well supported," a trader said.
The Bund future was last 16 ticks up at 143.06 with German 10-year yields 1.3 basis points lower at 1.63 percent, their lowest in nearly six months.
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