LONDON: German Bund yields rose on Tuesday as investors turned cautious before a European Central Bank meeting and the release of key US non-farm payrolls data later in the week.
German 10-year Bund yields, which set the standard for euro zone borrowing costs, rose 3 basis points to 0.75 percent, having fallen to an all time low of 0.69 percent on Monday.
Traders said the fall below 0.70 percent prompted some investors to book profits on the latest Bund rally triggered by speculation that the ECB may announce new monetary policy easing measures as early as Thursday.
With the ECB's meeting so close on the horizon, many investors looked to pare back some of those bets.
Comments from ECB policymakers, as well as surveys of market participants suggested the central bank's next move may not come before March next year. "The Bund future has started making room for the ECB meeting and the US payrolls," Commerzbank strategists said in a note.
Bund futures fell 36 ticks to 152.17. The US jobs figures are due on Friday.
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