German government bonds are trading little changed Friday following earlier gains led by the short-end, where the 2-year Schatz sank deeper into negative yield at -0.0063%. In addition, the yield on the German 5-year Bobl hit fresh record low at 0.332% and the 30-year Bund yield fell to record low at 1.7329%. The benchmark 10-year Bund hit record low at 1.195%. However, yields have since rebounded back on profit-taking, with Schatz trading back in positive yield. Overnight, chatter overnight on another China RRR rate cut after weak PMI data. Attention turns to European PMI data this morning — Italy (0743GMT), France (0748GMT), Germany (0753GMT), Greece (0758GMT) and the main EMU number (0758GMT) are also due this morning and are expected to confirm preliminary readings including 45.0 for the EMU data. UK data also sees the 0827GMT release of the Markit/CIPS Manufacturing PMI. EMU Apr unemployment data is also eyed at 0900GMT. The key focus is clearly on the US non-farm payroll data at 1230GMT.
EasyForexNews Research Team