Bunds may start a bit higher Monday amid a Bundesbank warning that Germany must cut its deficit. The second and final release of the euro zone composite purchasing managers for December is expected to confirm the mild improvement reported in the preliminary survey. But, with the balance remaining below the key 50 level, concerns that the region’s economy is already contracting will only increase. In the U.K., the government is determined to do more to help the economy recover, and use the London Olympic games and celebrations to mark the queen’s 60th year on the throne to show what the country can achieve despite the trying times, Prime Minister David Cameron said Monday. U.S. Treasury bonds have handed investors a return of 9.66% through last Thursday on the back of 5.87% gain in 2010, according to data from Barclays.
EasyForexNews Research Team