LONDON: The German Bund future rose on Wednesday following a sell-off in Italian debt that made market players nervous a day before a bond sale in Rome, while investors also readied for US data to gauge the strength of the recovery across the Atlantic.
The German Bund future rose 14 ticks at the open to 137.45, extending the previous day's rise.
On Tuesday, Italian bonds were the euro zone's weakest performers after an auction of inflation-linked bonds, knocking confidence ahead of a sale of medium-term Italian debt on Thursday.
"I think already the impact of the LTRO (three-year ECB refinancing operation) is beginning to wane," said one trader. "I think we are waiting for the next blow-up ... I think Europe is massively complacent in thinking they have solved everything."
Investors will also sift through a flurry of data from the United States this week, with durable good orders later in the day being followed by growth and inflation numbers on Thursday.
Recent comments by Federal Reserve chief Ben Bernanke fuelled investor bets for further monetary stimulus.
Bernanke said on Tuesday it was too soon to declare victory in the US economic recovery, warning against complacency in policymaking as the outlook brightens.
In a speech on Monday, he said the US economy would need to grow more quickly to ensure continued progress in reducing the jobless rate.
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