LONDON May 2 German Bund futures pushed higher
at the open on Thursday with concerns about the health of the
global economy and the expectation of a European Central Bank
rate cut underpinning demand for low-risk bonds.
Data from U.S. payrolls processor ADP on Wednesday, when
most European markets were closed for a holiday, showed private
sector employers added 119,000 jobs in April, well below
expectations, suggesting the world's biggest economy was
encountering a soft patch.
In China, a private survey on Thursday showed factory sector
growth eased in April as new export orders fell for the first
time this year, suggesting the euro zone recession and sluggish
U.S. demand may be hobbling the country's economic recovery.
Focus is now on the ECB, which is widely expected to cut its
main refinancing rate by 25 basis points to a record low of 0.5
percent. Traders said the bond market already anticipated such a
cut so Bund prices could fall even in the event of such a
"A 25 basis point cut is probably fully priced to a degree
so you may get a bit of profit-taking if they do cut rates," a
The Bund future was 16 ticks up at 146.74 compared
with 146.58 at Tuesday's settlement, and not far off a record
high of 146.89 reached in June 2012.