Wednesday, 11 July 2012 15:07
LONDON: German yields were steady on Wednesday before a sale of 10-year German debt which might attract added demand after euro zone finance ministers' latest meeting to address the euro crisis did little to reassure investors.
Italian yields were mixed, with markets largely shrugging off comments by Prime Minister Mario Monti on Tuesday that his country could be interested in tapping the euro zone's rescue fund for bond support. The comments underscored the scale of policymakers' problems in coming to grips with a crisis that is now threatening to engulf the euro zone's third largest economy, long deemed too big to be bailed out. That backdrop is likely to add to the appeal of a German debt sale that offers investors higher returns further up the yield curve after two-year bond yields turned negative following European Central Bank rate cuts last week.
"It should be a good auction, redemptions and coupons should ...