LONDON: German Bunds rose on Friday as the latest bout of news swayed market opinion away from the idea that the Federal Reserve was likely to scale back monetary stimulus soon.
Data on Thursday showed US retail sales rose more than expected in May and first-time applications for unemployment benefits fell last week. Investors will look at US data this session, including industrial output, for fresh insight.
Financial markets have been choppy in recent weeks, with trade dominated by views on the timing of a possible Fed exit from ultra-loose monetary policy, making European assets particularly sensitive to US data releases.
The view that a Fed monetary pull-back was not imminent was reinforced by a Wall Street Journal article saying an adjustment in the Fed's bond-buying program did not mean that the US central bank would end "all at once" or that it was "anywhere near raising short-term interest rates."
German Bund futures rose 35 ticks to 143.54.
"It certainly changed the tone yesterday," one trader said.
Euro zone inflation numbers are also due later this session.
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