Bund futures fall to day's low after weak euro zone inflation

LONDON: German Bund futures fell on Tuesday after surprisingly low euro zone inflation data but the move was expected to be short-lived as the data cemented the case for European Central Bank policy easing later this week.

Some traders said the weak inflation data was already priced into the market and prompted investors to book profits after a recent rally.

"That number was if anything bond friendly. We expect the Bund to regain its momentum and start rallying again ahead of Thursday's ECB meeting," one trader said.

Bund futures fell to a day's low of 146.40, down 32 ticks on the day.