LONDON: Demand for low-risk assets nudged German Bunds higher on Wednesday as short-term debt auctions from Italy lent a cautious tone to holiday-thinned markets.
Bund futures were 21 ticks higher on the day at 138.19, with extremely low liquidity likely to fuel volatile price movements throughout the day.
Italy will sell up to 9 billion euros of six-month treasury bills and 2.5 billion euros of two-year zero coupon bonds. Demand from domestic banks was expected to provide a smooth auction, albeit at a high cost.
The country faces the more difficult task of selling long-term debt on Thursday where there will be a greater reliance on international investors to buy 8.5 billion euros of debt with maturities of up to 10 years.
Comments
Comments are closed for this article.