FRANKFURT (dpa-AFX) - The prices of German government bonds fell on Tuesday. After price gains the day before, the benchmark Euro Bund future fell by 0.36 percent to 134.62 points by the afternoon. In turn, the yield on ten-year Bunds rose to 2.27 percent. Yields rose in most eurozone countries.

Weak data on German gross domestic product (GDP) did not boost the market. GDP shrank by 0.3 percent in the fourth quarter compared to the previous quarter. However, economists had expected this development.

Commerzbank chief economist Jorg Krämer does not see a turn for the better: "Companies and consumers simply have too much to cope with when you think of the new interest rate regime, inflation concerns, the erosion of location quality and the fading tailwind from China." Even after the end of the recession, there is no strong upturn in sight.

Bond prices came under greater pressure in the afternoon. In the USA, the number of job vacancies rose unexpectedly in December. This could be a signal that the labor market remains robust. This would tend to argue against an imminent interest rate cut by the US Federal Reserve. The Fed will announce its interest rate decision on Wednesday. According to economists, the key interest rate is likely to remain unchanged for the time being. However, cuts are expected later in the year./jsl/he