Few expect Germany's top court court to rule the bailout fund unconstitutional -- an outcome that would torpedo latest attempts to fix the region's debt crisis -- but some think the judges could attach tough conditions on any future German aid.
"In these markets we might see a knee-jerk selloff after they give it the OK, but how long that lasts, I don't know. It's all about the conditionality," a trader said.
Bund futures were 22 ticks lower at 140.16 shortly after the open. Commerzbank strategists saw potential for the contract to fall 50-100 ticks if the court rules in favour of the bailout fund.
In addition to the launch of Germany's new October 2017 bond , investors will be watching Dutch elections to gauge the likelihood of the country forming a government that will remain committed to austerity targets.