LONDON: Bund futures opened slightly lower on Tuesday, as better-than-expected US corporate results and retail sales data and talk about Spain being close to a bailout improved appetite for riskier assets.
Uncertainty over the timing of a Spanish bailout remained high, however, and the December futures contract was not expected to break this month's range of roughly 141.00-142.00 in the near term. A rescue package would pave the way for European Central Bank purchases of Spanish government bonds.
At 0603 GMT, Bund futures were 17 ticks lower at 141.38. European shares were expected to open higher.
Some of the focus is also on Greece, where 10-year bond yields fell to their lowest since Aug. 2011 on Monday as speculation grows that Athens will secure new cash from its international lenders soon.
"There's more talk about Spain being close to a bailout, there's more speculation on Greece," one trader said. "But in terms of activity it's been calm for quite a few days and I don't see why that's going to change."
A Spanish bailout request could come next month according to euro zone officials, one of whom said talks on a potential aid programme were advancing.
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