LONDON Jan 7 German Bunds edged up on Monday,
with a fall to one-month lows last week prompting some investors
to buy back the cheapened paper and wait for further proof the
world economy was recovering.
Figures showing on Friday the U.S. services sector grew in
December at its fastest pace in 10 months added momentum to a
sell-off in German bonds last week that was sparked by a
last-minute budget deal to avert a U.S. fiscal crisis.
At 0704 GMT, Bund futures were 18 ticks higher at
142.93, having fallen by almost three full points last week to a
one-month low of 142.75.
"Further losses cannot be ruled out ... although temporary
counter movements are possible given the major losses of recent
days," strategists at Helaba Landesbank Hessen-Thueringen said
in a note.
"We expect sideways trading around 143.00 initially."