German Bonds May Fall on `Unproblematic' Irish Debt Sale, ZEW, WestLB Says

German bonds may fall today because a sale of Irish debt will probably pass successfully and a ZEW Center for European Economic Research report may show an increase in German investor confidence, WestLB AG said.

“The Ireland auction will probably steal the show,” fixed-income analysts including Michael Leister in Dusseldorf wrote today in an investor report. “Since we anticipate an unproblematic reception on the whole, bunds could come under greater trading pressure. Should the upside surprise in the ZEW that we anticipate also materialize the market could use this as an opportunity to take profits from the recent bund rally.”

German 10-year bonds were little changed, with the yield at 2.33 percent as of 8:06 a.m. in London.

To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net

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