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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.