Wednesday, 11 April 2012 13:53
LONDON: Bund futures held close to record highs on Wednesday ahead of a German auction and Spanish benchmark yields flirted with 6 percent, with spreading doubts about the euro zone's ability to contain its debt crisis dominating market sentiment.
Investors took a breather in their flight to safe havens as Germany prepared to launch a new 10-year bond, with a sharp rally on Tuesday exaggerated by thin liquidity prompting Bund futures to fall 34 ticks to 139.98 - still within sight of the all-time high of 140.52.
But with the market appearing to be losing confidence that Madrid can exercise the fiscal discipline needed to control public finances amid a faltering global growth outlook, analysts said another selloff of peripheral debt looked on the cards.
"With the (German) supply coming in, I guess this has induced players to book some profit for the time being," said Michael Leister, strategist at DZ ...