LONDON May 7 German Bunds were little changed
on Tuesday, with expectations the European Central Bank may ease
policy further offsetting selling pressure from a pick-up in the
U.S. labour market.
Bund futures rose to record highs last week after the ECB
cut its key interest rate to 0.50 percent and signalled it was
ready to cut its deposit rate below zero percent if needed.
The bank's President Mario Draghi departed from a prepared
speech on Monday to reiterate this stance.
ECB easing bets helped stabilise German debt after Bund
futures tumbled by about a point on Friday when a U.S. non-farm
payrolls report beat market expectations, denting appetite for
"We are watching data, but I think expectations for more
easing from the ECB should keep (Bunds) underpinned. Draghi was
dovish yesterday," one trader said.
Bund futures were 1 tick lower on the day at
146.15, having hit an all-time high of 147.20 on Thursday.