German Bunds Rise as Stocks Retreat

German Bund futures jumped on Monday as a retreat in stocks on expectations of soft Chinese manufacturing data spurred flows into safe-haven government bonds.

Flash manufacturing PMI readings from China, the world’s second biggest economy, could come in below the 50 level early on Tuesday, traders said, indicating that manufacturing activity is contracting.

“The Asian markets are weak so it looks to be a risk-off day and a continuation of the Bund rally that started last week,” said Piet Lammens, a strategist at KBC Securities.

Bund futures were last 30 ticks higher at 148.79 compared with 148.49 at Friday’s settlement.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza