LONDON May 16 German Bund futures edged up on
Thursday before final euro zone inflation data for April which
is expected to reinforce expectations the European Central Bank
will ease policy further.
Lower-rated euro zone debt markets could find renewed
support in the near future after Italy sold 6 billion euros
worth of 30-year bonds via a syndicated deal which drew strong
demand on Wednesday.
However, traders say gains for peripheral bonds might not
occur right away as the market is still trying to digest the
recent supply, which includes syndicated deals from Spain and
Portugal earlier this month.
"There might be a little indigestion so it might take a
little while (until peripheral debt recovers)," one trader said.
Bund futures were 20 ticks higher at 144.84. A
preliminary estimate showed inflation in April was 1.2 percent
year-on-year. The data follows weak euro zone growth
figures on Wednesday, which showed the region's economy
contracted by 0.2 percent in the first quarter.
(Reporting by Marius Zaharia/editing by Chris Pizzey, London
MPG Desk, +44 (0)207 542-4441)