LONDON, May 17 (Reuters) - German Bund futures slipped at the open on Friday as some in the market booked profits after this week’s gains but the losses were limited by expectations central bank policies will remain ultra-easy for months to come.
Bunds hit one-week highs on Thursday after soft U.S. data on housing, jobs, prices and manufacturing raised questions about the strength of the economy, easing speculation the Federal Reserve might slow its bond purchase programme. Some Fed officials, however, still called for weaning the economy off stimulus.
“The data is not great so I can’t see why they (the Fed) would be suddenly turning around and tapering off...Treasuries are holding firm so there’s no reason for Bunds to sell off. I think it will be another day of potential consolidation,” a trader said.
At 0704 GMT, the Bund future was 4 ticks lower at 145.27 compared with 145.31 at Thursday’s settlement.