EURO GOVT-Bunds edge higher as market stabilises after selloff
LONDON Jan 8 (Reuters) - German government bond prices edged higher on Tuesday as investors dipped a toe back into the market for low-yielding but secure assets after a steep selloff last week made valuations more attractive.
The German bund future was 16 ticks up on the day at 143.22, recovering for a second day after a small rise on Monday and moving in line with U.S. Treasuries. The rebound follows a steep three point sell off last week when an easing of U.S. concerns saw investors pile into riskier assets.
"People seem to be coming back in slowly. Given the weak backdrop in Europe and the U.S. it's not surprising to see Bunds tick back up a bit, but markets remain very quiet this week," a trader said.
Spain, the country at the frontline of the debt crisis which is expected by many to turn to official lenders for a bailout in 2013, will detail how much money it needs to raise this year at around 1000 GMT.
Later in the day the Netherlands will begin its 2013 fundraising with a three-year debt sale that will be the first euro zone bond issued with a collective action clause -- a measure designed to make debt restructurings easier to manage. All new sovereign bond issues from the region must now contain CACs.
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