LONDON, April 5 (Reuters) - German Bund futures were flat on Friday after a European Central Bank-fuelled rally in the previous session, with investors reluctant to place big bets before key U.S. jobs numbers.
The U.S. economy probably added 200,000 jobs last month, with the jobless rate steady at 7.7 percent, according to a Reuters survey of economists.
A surprise to the upside could revive debate about the timing of an eventual exit from ultra-loose monetary policy, Commerzbank said in a research note.
“The air for Bund longs is getting thin given current dizzy heights. Risk/reward rather suggests tactical shorts,” Commerzbank said.
German Bund futures were up 1 tick at 145.97 and 10-year yields were steady at 1.247 percent, having hit its lowest since August at 1.237 percent in the previous session.
The fall in German yields was driven by comments from ECB President Mario Draghi, who said the bank would monitor incoming data very closely and was ready to act if necessary.
“The rally will continue in the next days but I think it will be hard to see new lows,” Alessandro Giansanti, senior rates strategist at ING said.