Thursday, 29 November 2012 12:33
LONDON: German Bund futures dipped on Thursday as global equities rose overnight, with investors looking to Italy's last funding hurdle of 2012 to gauge whether a recent rally in higher-yielding bonds would continue.
The treasury is seeking to place up to 6 billion euros of five- and 10-year bonds at an auction that could bring Rome within reach of its 460-465 billion euros ($594-$600 billion)2012 borrowing target.
Italian bond prices did not cheapen in the run-up to the auction this week but improved sentiment towards riskier euro zone debt after a deal on the next tranche of Greek aid should provide a favorable backdrop to the sale. Italy paid less than 1 percent on Wednesday to sell six-month bills - its lowest in more than two years.
"It might be an average auction because there is a bit of a lack of concession but then I think it probably trades okay afterwards given ...