Reuters logo
Bunds up but rangebound; market awaits data, central bank decisions
July 29, 2013 / 6:26 AM / in 4 years

Bunds up but rangebound; market awaits data, central bank decisions

LONDON, July 29 (Reuters) - German Bund futures edged higher on Monday within tight ranges, with investors reluctant to place big bets before a run of monetary policy decisions and data this week.

The European Central Bank, Bank of England and Federal Reserve are all expected to maintain their respective pledges to keep policy loose at meetings this week.

With many economists and investors expecting the Fed to reduce the size of its bond-buying program in September, the U.S. central bank’s comments will be scrutinised for clues to timing of potential tapering, which seems likely to remain data-dependent.

German Bund futures rose 10 ticks to 142.58, having fallen last week after four straight weeks of gains. Investors will also trade cautiously before a bout of indicators including U.S. jobs numbers later this week.

“Overall we expect central banks to sound a dovish tone, reassuring about their very accommodative policy stances,” Commerzbank said in a research note.

“We expect core and periphery spreads to tighten further and prefer tactical longs in Bunds for today.”

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below