FRANKFURT, June 23: German debt slid into the new week on Monday at virtually unchanged levels, lacking new trading impulses needed to push the market higher or lower.

"It is really quite dull and nothing seemed to come out of the Denver summit and so there is really nothing very new for the market to focus on," lamented one trader, adding that no news in this instance may not be good news.By 07:42 GMT the September Bund futures contract, traded on Frankfurt's DTB exchange, was up one basis point at 101.35, having drifted in a narrow 16 basis point range between 101.29 and 101.45 since the opening.

Dealers predict the day's range will not be significantly wider than the range seen already, saying the market faced strong resistance at the 101.50/56 level. Support meanwhile is seen at 101.22 or at 101.00, dealers added.

"If the market breaks past resistance levels, then we could quickly move up towards the old high of 101.88, but I do not think that this can happen today," another dealer said.

Even though US treasury prices ticked higher on Friday, the German market appeared only modestly impressed with the move, unwilling in early trade to follow the move. However this could change once the US opens, a dealer said.

Recently, however, Bundesbank officials have been particularly tight-lipped about exchange rate levels and have often preferred to talk about currency Union in only very general terms.

Looking further ahead the market is nervously awaiting the German government's next bond issuance calendar which will make clear when and if a 30-year bond is coming."There is definitely nervousness about the 30-year bond," a dealer said, adding that banks would likely proceed very cautiously at the auction, whenever it might be.

As Germany now permits bond stripping, dealers said the market needs longer-dated securities, but all the same there remains the fear that once a longer-dated bond its issued it signals the end of an interest rate easing cycle."People still remember what happened the last time Germany issued a 30-year bond three years ago when the bond market went crazy," said a dealer referring to the New Year's bond of 1993/1994.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.