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German bunds flat ahead of U.S employment reports

The German bunds were trading nearly flat on Friday as investors await U.S. employment data. The yield on the benchmark 10-year bonds, which moves inversely to its price fell 1bps to 0.150 pct and the yield on the 2-year bonds stood unchanged at -0.505 pct by 0710 GMT.

The April Labour Department employment situation report will be released on Friday (1230 GMT), in which non-farm payrolls is expected to increase 200k, from prior 215k in March. Alongside no change is anticipated in the unemployment rate of 5.0 pct.

The German bunds have been closely following developments in oil markets because of their impact on inflation expectations. Today, crude oil prices tumbled overnight on profit booking and surging dollar that at least temporarily outweighed output after wildfire in Canada disrupted its oil sands production, while escalating fighting in Libya threatened the North African nation's output. The International benchmark Brent futures fell 0.93 pct to $44.59 and West Texas Intermediate (WTI) dipped 0.79 pct to $ 43.97 by 0710 GMT.

The markets will now focus on the next week’s German factory order on Monday (0600 GMT), March exports on Tuesday (0600 GMT), April CPI and Q1 GDP on Friday (0600 GMT). Meanwhile, the German stock index DAX Index fell 0.45 pct at 9,800 by 0710 GMT.

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