Bunds track Treasuries higher after strong U.S. auction
LONDON, Sept 12
LONDON, Sept 12 (Reuters) - German Bund futures rose on Thursday, tracking gains in U.S. Treasuries after strong investor demand at a $21 billion auction of 10-year notes.
Bunds were expected to remain range-bound before a sale of Italian debt which will come against a challenging political backdrop.
Italy will offer up to 5.5 billion euros of paper maturing in 2016 and 2028. It also plans to sell up to 2 billion euros of floating rate bonds.
Analysts expect domestic investors to support the sale even though growing political risk and plans to issue more debt this year are likely to keep the country's debt vulnerable.
German Bund futures were 47 ticks higher at 137.57.
"It was a very strong U.S. auction," said one trader to explain the move. He said the Italian auction would probably be fine, adding "I am not saying Italy is out of the woods."