LONDON: German Bund futures were little changed on Wednesday before a sale of 10-year debt which could see some demand after a meeting of euro zone finance ministers did little to soothe investor concerns about an intractable euro zone debt crisis.
Italian BTP futures only came under slight pressure in early trading after Prime Minister Mario Monti said his country could be interested in tapping the euro zone's rescue fund for bond support.
The comments underscored the difficulties policymakers are facing in coming to grips with a crisis that is threatening to engulf the euro zone's third largest economy, which is deemed too big to be bailed out.
The backdrop could be supportive for a sale of German debt, although investors will have to weigh their appetite for safety against the increasingly low yields on offer.
German Bund futures rose two ticks to 144.13.
"We will look at the German 10-year to see what the appetite is at these sort of levels. I think it will be all right, I don't think it will be spectacular," a trader said.
Germany's top court agreed on Tuesday to examine complaints lodged against the European Union's bailout fund and new budget rules but gave no date for its verdict, keeping investors on tenterhooks over the prospects for overcoming the euro zone crisis..
The trader said uncertainty surrounding that ruling was also underpinning safe-haven demand.
Later in the day, investors would look to minutes from the US central bank's latest monetary policy meeting for further insight into the thinking of the Federal Reserve. A disappointing jobs report last week reinforced expectations that it will eventually embark on a third round of quantitative easing.
Comments
Comments are closed for this article.