LONDON Nov 6 German government bonds were
steady at Tuesday's open with investors avoiding placing large
bets before a close-run U.S. election and a Greek parliamentary
vote on crucial austerity measures.
Polls indicate the election between President Barack Obama
and Republican challenger Mitt Romney will be very close with
the risk of a change in fiscal and monetary policy in the
world's largest economy keeping investors on the sidelines
December Bund futures were 2 ticks lower at 142.11
after rallying the previous day.
"Given today's thin data calendar...the near-term downside
should be protected ahead of U.S. elections and the vote in the
Greek Parliament," Commerzbank strategists said in a note.
Risk sentiment soured on Monday as another make-or-break
vote loomed in Greece, pushing two-year German bond yields into
negative territory for the first time in two months.
The Greek parliament will decide to approve or reject on
Wednesday the government's latest package of austerity measures
with approval of the reforms and the passage of the 2013 budget
crucial to receiving more bailout cash.
The renewed demand for lower-risk assets seen this week will
be supportive for Austria's sale of 1.3 billion euros of 2019
and 2022 bonds, analysts said.