LONDON: German Bund futures held within sight of record highs on Tuesday as concerns over the cost of shoring up the Spanish banking system kept safe-haven assets in strong demand.
Bunds paused for breath after rallying on Monday as Spanish debt came under heavy pressure with the 10-year yield spread between the two hitting euro-era highs.
Little respite was in sight for the bonds with troubled lender Bankia - which asked for a 19 billion euros bailout on Friday - reposting 2011 results to reflect a 3.3 billion euro loss as the government proposed putting sovereign debt into the lender.
June Bund futures were 13 ticks lower at 144.24, with 10-year cash yields 1.5 basis points higher at 1.378 percent.
Spanish derivatives exchange MEFF launched a 10-year Spanish government bond future on Tuesday, however there was little activity in the first minutes of trading.
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