LONDON: German government bonds opened lower on Tuesday, pushing futures away from contract highs, with equities set to rise on expectations of upbeat data out of Germany and the United States.
However, Bunds are unlikely to slip too far with growth fears for much of the rest of the euro zone supporting the safe-haven paper and relief over Greece's massive debt restructuring proving short-lived with the country's financial situation still seen as unsustainable.
Germany's ZEW economic sentiment, due at 1000 GMT, is seen at 10.0 versus 5.4, while US February retail sales are also expected to show an increase. The data comes ahead of a Federal Reserve policy meeting.
June Bund futures were 24 ticks lower at 138.63 after hitting a contract high of 139.06 the previous session. Ten-year yields were two basis points higher at 1.78 percent.
"We are at the top of the recent range and we might need some fresh triggers to break through but the danger today is that people will use the Fed as an excuse to stay on the sidelines," a trader said.
With Greece taking a back seat, at least temporarily, market attention has shifted to other peripheral countries with euro zone finance ministers turning their fire on Spain and demanding it aims for a tougher deficit target this year
The Netherlands will sell up to 3.5 billion euros of three-year bonds with plentiful demand expected from investors seeking top-rated safe-haven assets.
Italy will also sell 12 billion euros of 3- and 12-month Treasury bills.
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