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4 years ago
CORRECTED-EURO GOVT-Bunds rally pauses on caution before U.S. jobs data
July 5, 2013 / 6:11 AM / 4 years ago

CORRECTED-EURO GOVT-Bunds rally pauses on caution before U.S. jobs data

(Corrects name of strategist in paragraph 4)

LONDON, July 5 (Reuters) - German Bund futures were steady at the open on Friday, as caution before U.S. jobs data halted the previous day's gains prompted by the European Central Bank's signal that it may cut interest rates further.

The ECB's unprecedented steer on monetary policy helped Portuguese yields ease from this week's peaks above 8 percent but investors still questioned Lisbon's ability to exit its international bailout in 2014.

The U.S. payrolls report, due at 1230 GMT, is expected to show that jobs growth slowed last month, but not enough to shift the U.S. Federal Reserve away from its plans to start cutting back monetary stimulus later this year.

"The market is not expecting a very weak report. Anything from neutral to better should prevent a decline in yields and will be enough to keep markets and investors convinced that the Fed will start tapering its QE (quantitative easing) programme from September onwards," KBC strategist Mathias van der Jeugt said.

The Bund future was last 4 ticks up at 142.32 compared with 142.29 at Thursday's settlement. (Reporting by Emelia Sithole-Matarise; Editing by John Stonestreet)

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