Fri Nov 2, 2012 6:02am EDT
(Corrects day in first paragraph)
* Focus on U.S. payrolls data but trader positioning light
* Bunds inch higher, still bogged down in recent ranges
* U.S. elections and Greek risks dampen trading appetite
By William James
LONDON, Nov 2 (Reuters) - German Bund futures rose on Friday, testing the top of their recent range but many investors shied away from taking large positions before U.S. jobs data and with Greece again facing crisis.
Uncertainty over the looming U.S. election, which could have a material spillover into euro zone bond markets, has discouraged investors from building big bets on prices rising or falling after the closely watched non-farm payrolls data.
"Just like any other non-farms we'll see a reaction because liquidity is so low after it, but a few minutes later we'll be back to trading the range, especially with the U.S. election coming up," a trader said.
The data is due at 1230 GMT, and Reuters polls show the market is expecting an addition of 125,000 jobs in October.
"Anything 50k to 70k either side and we'll see a move in futures but that would just be short term. To really break the ranges we'd be looking at below 50k or above 250k," the trader said.
The December Bund contract was 18 ticks higher at 141.89, having briefly broken above the 142 to 141.18 trading range of the last three sessions. Traders said a break of the range would only be confirmed if prices closed above 142.
GREEK DANGERS RISING
Events within the euro zone also deterred market participants from long-term investment as Greece, at the heart of the bloc's debt crisis, threatened to provide another flashpoint.
Greece's deepening recession has put public finances under increasing strain and international lenders are struggling to reach an agreement with Athens over how to provide more urgently-needed bailout cash.
A parliamentary vote next week on 13.5 billion euros of contested austerity measures is key to negotiations with international authorities, with the outcome increasingly uncertain. One Greek lawmaker quit the co-ruling Socialist party on Thursday in protest over the package.
"There remains the possibility that they could reach some kind of impassable stumbling block," said Investec analyst Brian Barry, who said another Greek debt restructuring could "reopen the Pandora's box" of a country leaving the single currency.
Greek debt was steady on the day, stabilising after a sell-off on Thursday, but the tension prompted some of the opportunistic investors who bought Greece's bonds at ultra-cheap levels to sell and book profits.
Bonds issued by Spain and Italy, who have been in the focus of the debt crisis for much of the year, were also relatively stable with 10-year yields at 5.6 percent and 4.92 percent respectively. (Editing by Nigel Stephenson)
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