China's annual consumer inflation fell to a 30-month low, fuelling expectations of further policy easing in the world's second-largest economy. European stocks were set to rise
But sentiment was fragile.
Safe haven Bunds rose on Wednesday as investors focused on the condition the European Central Bank has set for resuming its bond purchases - that troubled countries ask for help from the euro zone's rescue funds.
This raised the risk that the debt crisis engulfing Spain and Italy may have to get worse before policymakers make a move, traders said.
"Until we get more details on the plan and Spain asks for help we can be in a consolidating phase," one trader said.
"Stocks are trading well and that's not helping the core (euro zone debt) but we're going to move around in thin volumes because I don't know why we should make a significant break either way."
At 0611 GMT, Bund futures were 26 ticks lower on the day at 142.49.
Concerns also revolve around the euro zone's rescue funds as well, with the European Stability Mechanism awaiting for a green light from the German Constitutional Court, which rules on September 12.