LONDON, April 13 German Bund futures rose on
Friday as ongoing worries about the euro zone debt crisis and
lower-than-expected Chinese growth data gave investors the
opportunity to buy back into safe-haven bonds.
Asian shares pared gains overnight after data showing
China's rate of GDP growth slowed by more than expected in the
first quarter, reviving worries of a hard landing for the
world's second biggest economy.
China's GDP growth in the first quarter was 8.1 percent,
down from 8.9 percent in the three months prior and below a
forecast for 8.3 percent growth in a Reuters poll.
"Last night's Chinese GDP figures should set the tone for
today's morning trading," Commerzbank said in a research note.
German Bund futures rose 26 ticks to 139.93 having
come under pressure in the previous session as market players
bought back into debt of the euro zone's highly indebted
But recent auctions have served as a reminder of the ongoing
risks facing the region. Concerns about Spain's deep budget
problems made it more costly for Italy to borrow over three
years at an auction on Thursday..
"We have had a tough start to the week, a reasonable finish
to the week, and I think we will end up somewhere in between,"
Padraic Garvey, head of investment grade strategy at ING said.
Richard Adcock, technical analyst at UBS, saw further
strength for the Bund future while it traded above 139.06/34. A
break above 140.44 would be a further bullish trigger, he said.