LONDON Oct 22 Bund futures opened higher on
Monday on worries that European banking support will only apply
to new problems and after weaker-than-expected earnings from a
batch of major U.S. companies.
Last week's rally in Spanish and Italian bonds came to a
halt on Friday after Germany said the euro zone's rescue fund
would not take over liability from member states such as Spain
for past bank rescues.
At 0610 GMT, Bund futures were 14 ticks higher at
Spanish Prime Minister Mariano Rajoy secured backing for his
austerity drive in a vote in his home region of Galicia over the
European officials and analysts have said that Rajoy had
wanted to get regional elections behind him before asking for
international aid, a move which would activate the European
Central Bank's bond-buying programme.
Another regional election is scheduled in Catalonia, on