Bunds inch up on downgrades to Spanish regions

LONDON: German Bund futures edged higher at the open on Tuesday after Moody's Investor Service cut the credit ratings of five of Spain's regions, including economically important Catalunya.

Spanish government bond yields were also likely to drift higher with investor uncertainty over when Spain will request aid that would activate European Central Bank support for its bonds remaining high.

"Moody's cut Catalunya amongst other Spanish regions so there's a bit of bad news out there and we're seeing a bit of a bid for Bunds," a trader said.

The December Bund future was last six ticks up at 139.93 compared with 139.87 at Monday's settlement.