FRANKFURT (dpa-AFX) - German Bund prices rose until late afternoon on Friday. The benchmark Euro-Bund futures contract rose by 0.41 percent to 133.06 points. The yield on ten-year Bunds fell to 2.37 percent. This was below the three-month high of 2.5 percent reached the previous day.

Economic data from Germany was positive. The Ifo business climate brightened slightly in February. "The economy is stabilizing at a low level," commented Ifo President Clemens Fuest. Bank economists remain skeptical about the future. Commerzbank chief economist Jorg Krämer continues to expect German economic output to fall by 0.3 percent this year. However, the data did not have a lasting negative impact on bonds.

ECB representatives predominantly spoke out against cutting interest rates too quickly. "Even if the temptation may be great: it is too early for interest rate cuts," said Bundesbank President Joachim Nagel. Inflation is on the retreat both in Germany and in the eurozone. But the target has not yet been reached.

The head of the Estonian central bank, Madis Müller, also called for a cautious approach to key interest rate cuts. Wage growth is still too strong. Further data would have to be awaited.

The head of the Portuguese central bank, Mario Centeno, on the other hand, called for an early interest rate cut in March not to be completely ruled out, even if it is unlikely. Inflation could temporarily fall below the inflation target of two percent this year. However, Centeno is considered a monetary policy "dove". In case of doubt, it is therefore more in favor of a loose monetary policy./jsl/mis