EURO GOVT-Bund futures open up; mkt edgy about peripherals

LONDON, Jan 14 (BestGrowthStock) – German government bond futures
pushed higher at the open on Friday on nervousness about the
euro zone’s ability to speedily resolve the region’s debt
crisis, but concern over inflation pressures could cap gains.

Higher-yielding euro zone sovereign debt remained in focus
after Bloomberg quoted an International Monetary Fund official
as saying Europe had yet to allay investor “scepticism” about
the sustainability of the region’s debt crisis.

“The IMF have been speculating on the resolution of the debt
crisis in Europe overnight,” a trader said.

The Bund future (FGBLc1: ) was up 25 ticks at 124.89 by 0707
GMT compared with 124.64 at Thursday’s settlement close.

The front end of the German bond yield curve was seen
remaining under pressure after European Central Bank President
Jean-Claude Trichet said on Thursday the euro zone faced
short-term inflation pressures, which increased expectations of
future interest rate rises.

Euro zone inflation data due out later in the session is
expected to confirm the 2.2 percent year-on-year increase in
prices shown in initial estimates released on Jan. 4 — the
first time it has exceeded the ECB’s target for two years.
(Reporting by Emelia Sithole-Matarise, editing by Mike Peacock)