LONDON: German government bonds opened lower on Tuesday after solid manufacturing data from the United States lowered appetite for low-risk assets, although losses were expected to be limited by a weaker economic outlook for the euro zone.

Trading was set to remain thin before a European Central Bank meeting on Wednesday, with many investors already beginning their Easter break.

Markets are positioned for a wait-and-see attitude from ECB President Mario Draghi, with the main focus on his post-meeting comments after some of his colleagues have said in recent weeks that the bank needs to prepare an exit strategy after pumping about 1 trillion euros of cheap funds into the financial system.

"It's the ECB day tomorrow and people might use it as an excuse not to do a great deal," one trader said. "(Markets) are looking for a fairly benign outlook. Talk of exit is a bit premature."

Bund futures were last 20 ticks lower at 138.22, with benchmark 10-year yields 1.5 basis points higher at 1.818 percent.

Federal Reserve minutes due to be released later in the session are also expected to suggest a stand-by approach. The Fed is likely to continue to warn that premature tightening would be risky, while keeping an open-minded, but uncommitted view on further easing.