LONDON: German Bund futures were up slightly on Thursday but analysts said the euro zone's top-rated debt was vulnerable to profit taking in what looked set to be a quiet session.
In the absence of any major data in the euro zone, investors could look to Britain's first-quarter gross domestic product data to see if it reinforces the gloomy economic picture painted by recent releases out of the United States and Germany.
Rising expectations for an interest rate cut by the European Central Bank as early as next week has provided German Bund futures with support recently, making them vulnerable to a correction, analysts said.
"Most of this rate excitement and the expectation for a 25 basis points' lower refinancing rate should be in the price by now," said Rainer Guntermann, strategist at Commerzbank.
"Here the market needs further bullish impetus. It may risk a corrective move from here but very short term, maybe just for today."
German Bund futures were up 10 ticks at 146.29, having reached a new June contract high this week and drawing closer to record highs of 146.89 hit in June.
Patrick Jacq, rate strategist at BNP Paribas, said the contract was too expensive at current levels and there was room for 10-year German yields to push higher to the 1.30 percent area from 1.23 percent currently.
"At the moment I am relatively short of the Bund," Jacq said.
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