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EURO GOVT-Bunds retreat from record highs before U.S. jobs data
May 3, 2013 / 6:11 AM / 4 years ago

EURO GOVT-Bunds retreat from record highs before U.S. jobs data

LONDON, May 3 (Reuters) - German Bund futures retreated from record highs on Friday, with investors preparing for U.S. jobs data by booking profits on gains that followed a rate cut in the euro zone.

The European Central Bank cut its refinancing rate by 25 basis points to 0.50 percent on Thursday and said it would cut its deposit rate into negative territory if needed.

Bund futures were last 14 ticks lower on the day at 147.02, having hit a record high of 147.20 on Thursday.

“The ECB was very dovish yesterday ... It overdelivered compared to market expectations, so I see no reason why we should sell off too far,” one trader said, adding investors were booking profits while waiting for the U.S. data.

U.S. non-farm payrolls for April, due at 1230 GMT, are expected to have increased by 145,000 jobs.

A weaker-than-expected ADP National Employment on Thursday fuelled speculation the payrolls number could miss the forecast, but traders were still reluctant to shift their position in Bunds into uncharted territory.

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