LONDON: British government bonds tracked a rise in German debt on Friday in the absence of domestic impetus for trading, while data on US national output was likely to lead price action later in the session.
By 1102 GMT June gilt futures were 22 ticks higher on the day at 119.66 in volumes that were thinner than usual. Equivalent Bund futures were 17 ticks up.
It is still unclear what effect Japan's aggressive stimulus measures will have on government bonds. Uncertainty about the euro zone crisis and the health of the US economy also prevented big bets.
The Bank of Japan stunned financial markets on April 4 by promising to inject $1.4 trillion into the economy through buying Japanese government bonds as well as riskier assets.
But German and British bonds could suffer if data due at 1230 GMT shows a stronger rise in US gross domestic product in the first quarter than the 3 percent annualised increase forecast by economists.
The yield on 10-year gilts fell 3 basis points to 1.702 percent. Its spread over Bunds was 1 basis point tighter at 48 basis points.
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