Thursday, 05 July 2012 11:51
LONDON: German government bonds were steady at Thursday's open with investors sidelined ahead of a Spanish debt auction and European Central Bank policy meeting where expectations are for rates to be cut to a record low.
The ECB announces its policy decision at 1145 GMT, with dismal economic data paving the way for the central bank to take its main refinancing rate down to just 0.75 percent .
"Twenty-five basis points seems to be the consensus and there's probably going to be some disappointment if they don't deliver," a trader said.
"Or perhaps the expectations just shift to next month. At the end of the day the data's not great, rates are staying lower for longer and there's not many reasons to sell Bunds."
The Bank of England is also expected to launch a third round of monetary stimulus.
September Bund futures were 6 ticks higher at 142.38, with 10-year yields up a basis point ...