Bunds: becalmed ahead of potential ECB price, if not policy action

A relatively sedate start to Thursday’s Eurex session, befitting pre-ECB policy meeting and press conference cautious trade, with only a token nod to the latest upturn in risk sentiment amidst more concessions (albeit conditional) from NK on the nuclear arms front and from US President Trump on proposed import tariffs. Bunds opened at 156.72 vs Wednesday’s 156.81 close and knee-jerked another tick lower before finding an early base and recovering to a 156.80 high (just 1 tick below par). Much weaker than expected German ip data unlikely to have prompted much market response, but acknowledged at least against the backdrop of trade war tensions and the ECB’s upcoming assessment of the Eurozone economy/growth outlook.