LONDON, May 2 (Reuters) - German Bund futures pushed higher at the open on Thursday with concerns about the health of the global economy and the expectation of a European Central Bank rate cut underpinning demand for low-risk bonds.
Data from U.S. payrolls processor ADP on Wednesday, when most European markets were closed for a holiday, showed private sector employers added 119,000 jobs in April, well below expectations, suggesting the world’s biggest economy was encountering a soft patch.
In China, a private survey on Thursday showed factory sector growth eased in April as new export orders fell for the first time this year, suggesting the euro zone recession and sluggish U.S. demand may be hobbling the country’s economic recovery.
Focus is now on the ECB, which is widely expected to cut its main refinancing rate by 25 basis points to a record low of 0.5 percent. Traders said the bond market already anticipated such a cut so Bund prices could fall even in the event of such a measure.
“A 25 basis point cut is probably fully priced to a degree so you may get a bit of profit-taking if they do cut rates,” a trader said.
The Bund future was 16 ticks up at 146.74 compared with 146.58 at Tuesday’s settlement, and not far off a record high of 146.89 reached in June 2012.