LONDON, April 2 German Bund futures rose on
Tuesday as investors started the week in cautious mood, still
wary over the broader impact of Cyprus's landmark bailout, and
with demand supported by below-par U.S. data released on Monday.
The Bund future rose 9 ticks to 145.58, building on
gains made last week when investors took fright at the risk of
contagion from a Cypriot bailout which hit bank depositors hard.
Over the weekend Cyprus detailed losses of around 60 percent
on savings of more than 100,000 euros -- a
larger-than-anticipated amount which was expected to further
knock confidence in the safety of the euro zone banking sector.
Bunds were also supported by data released on Monday, when
European markets were closed, which showed U.S. manufacturing
slowed in March, denting optimism about global growth and
boosting the appeal of low-risk bonds.
"Even though we are likely to see some profit taking ahead,
the recent market action clearly illustrated (core) bonds
continue to find strong demand," said Jan von Gerich, chief
analyst at Nordea in Helsinki.