LONDON Feb 8 German Bund futures held steady in
early trade on Friday with demand for low risk assets
underpinned by a cautious note from the head of the European
Central Bank over the risks facing the euro zone economy.
Bunds pushed higher on Thursday after ECB President Mario
Draghi that the ECB will monitor the economic impact of a
strengthening euro, feeding expectations the surging currency
could open the door to an interest rate cut. He also played down
a rise in money market rates.
"Bunds had to go up after Draghi. He was pretty dovish. I
don't think you can rule out a rate cut in the first half of the
year and that should keep things underpinned," a trader said.
The Bund future was last 4 ticks up on the day at
142.86 compared with 142.82 at Thursday's settlement.
Market focus was also on Irish bonds after benchmark 10-year
yields slid to their lowest since before the start
of the subprime crisis in 2007 on news Dublin clinched a bank
debt deal that will cut its borrowing needs over the next