LONDON Feb 1 German Bund futures opened lower
on Friday as markets resumed a shift away from assets used as a
safe haven from the euro zone's troubles, but trading was
expected to be light ahead of a batch of major U.S. and European
Bund futures fell 27 ticks to 141.63, unwinding
modest gains made in the previous session when regular month-end
buying offered some respite from the worst month for German debt
since June last year.
Further losses were expected if the European Central Bank
announces that banks intend to repay another large chunk of its
three-year emergency loans next week. Bunds fell last week when
the first wave of repayments came in above expectations and
traders expect around 20 billion euros to have been repaid this
week. Details are due at 1100 GMT.
"The risk is that it comes in strong again and the Bund
doesn't like it because people decide, rightly or wrongly, that
that's a risk-on signal," a trader said.
The focus will then switch to U.S. non-farm payrolls data, a
key indicator on the health of the world's largest economy, made
even more pertinent after other recent numbers sent mixed
"We see little if any likely outcomes that argue in favour
of Bund longs. Instead we suggest going short in today's session
weighing up the risk skew," Commerzbank strategists said in a