LONDON: Bund futures opened little changed on Wednesday with speculation about the timing of a potential Spanish bailout request dominating the market and worries about the corporate earnings season creeping in.
A Spanish bailout request is seen by many as key to keep the euro zone crisis from escalating as it would activate the European Central Bank's new bond-buying programme and potentially ease borrowing costs for peripheral states.
Safe-haven Bund futures were last 1 tick higher on the day at 141.39.
"We have a lot of speculation about Spain ... but it doesn't seem to be going anywhere," one trader said. "The guidance on future earnings hasn't been great and that is in line with slower (macroeconomic) data recently."
Germany sells up to 5 billion euros worth of five-year bonds later in the day. Analysts expect a relatively stable trading range for German debt in recent weeks to support the auction after recent spates of volatility have caused weak demand for newly-issued bonds.
Comments
Comments are closed for this article.