LONDON: German Bund futures opened slightly lower on Tuesday as riskier assets rebounded on expectations that European leaders may come up with measures this week to foster growth in the euro zone and restore market confidence.
An informal meeting of European Union leaders on Wednesday is also expected to discuss the idea of euro area bonds jointly underwritten by all euro zone member states but Germany's long-standing position is unlikely to change.
Investors were using the slight pickup in riskier assets such as equities to pocket profits in Bunds after their sharp rally to record highs last week but traders expected the losses to be limited by concerns about Greece's political logjam and Spain's banking sector.
"There are summit hopes that they (the leaders) are going to announce something on growth. I'm not completely convinced they are but that's what's driving the market," a trader said.
"The market is getting ahead of itself again but given the rally we've had, risk (assets are) desperate for anything to hang onto at the moment."
The June Bund future was last 24 ticks down at 143.33 compared with 143.57 at Monday's settlement with German 10-year yields three basis points up at 1.46 percent.
Comments
Comments are closed.