LONDON: German Bund futures inched up at the open on Monday with traders bracing for softer German business sentiment data after weak manufacturing figures last week renewed growth worries aboutEurope's biggest economy.

After a run of positive economic data, weak PMI reports last week stoked fears the euro zone was sliding into recession, prompting investors to buy up low risk government debt, driving the 10-year German yields below 2 percent.

The German Ifo survey is forecast to reveal business morale was unchanged in March from last month's 109.6, according to the consensus outcome in a Reuters survey, but traders said that expectation may have softened after the weak PMI data.

"Psychologically people must be looking for a softer number as expectations must have been pared back after last week's PMI numbers...I still think there's a danger Bunds push on a bit," a trader said.

The Bund future was last two ticks up at 137.41 compared with 137.39 at Friday's settlement whileGermany10-year yields were at 1.877 percent, up half a basis point.

Spanish government bonds are likely to remain under pressure on Monday, after the country's centre-right People's Party won a regional election in Andalucia but did not secure the outright majority it expected, depriving Prime Minister Mariano Rajoy of a symbolic boost to help him push through harsh spending cuts.