LONDON: German government bond yields were steady on Wednesday, with investors looking to a run of US data to gauge when the Federal Reserve might curb monetary stimulus.
Global shares fell after new growth policies from Japan's Prime Minister disappointed, and fears over a cut in US stimulus efforts weighed on risk appetite.
New orders for US factory goods and services sector data were due this session, but the main focus was on the ADP National Employment report ahead of Friday's job numbers, traders said.
Analysts expected euro zone debt markets to trade in tight ranges before key events later in the week including the European Central Bank monetary policy meeting on Thursday and US jobs data on Friday.
"I don't think (the Bund) is going anywhere ahead of Friday. I think we are in for another (range-bound) day," one trader said.
German Bund futures were flat at 143.36, having in May posted their first monthly loss since January.
They hit a session low after surveys showed Britain's dominant services sector grew more than expected in May and euro zone business activity shrank at a slightly slower pace last month.
Ten-year German yields were flat at 1.50 percent, having on Monday hit its highest level in nearly three months at 1.534 percent.
Five-year German borrowing costs in the secondary market were slightly higher as investors braced for supply in that part of the curve.
Yields were 1.1 bps higher on the day at 0.55 percent, having risen some 20 basis points since the beginning of April.
That pick-up in yield would likely lure investors at a sale of up to 4 billion euros of five-year German bonds this session, analysts said.
"The sell-off in (bonds) can create a better entry point for investors," Alessandro Giansanti, senior rate strategist at ING said.
"We think the sell-off has gone too far so we are more inclined to have a reversal at the moment, to have lower core yields."
Lower-rated debt prices were also in tight ranges. Spanish bond yields fell 1.2 bps to 4.41 percent and Italian borrowing costs were down 1.2 bps at 4.09 percent.
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