LONDON, April 5 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,"
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.