LONDON Feb 4 German Bund futures erased early
losses and pushed higher on Monday as the poor performance of
bonds issued by the region's weaker states drove investors
towards less risky assets.
Bund futures rose to a session high of 142.21, up
20 ticks on the day as Spanish and Italian bond yields continued
"Periphery has been trading awful all day, that's the
story," a trader said.
In Spain, Prime Minister Mariano Rajoy was facing calls to
resign over a corruption scandal in which he denies any
Traders also cited the growing popularity of Italian former
premier Silvio Berlusconi, who stepped down in 2011 with Italy
in the middle of a full-blown economic crisis,as a big worry for
investors before elections.