LONDON Nov 8 German Bund futures held steady at
the open on Thursday underpinned by investor concerns over a
looming U.S. fiscal crisis but activity was seen subdued before
a European Central Bank policy decision.
Traders were also focusing on a Spanish auction later in the
day of 3.5 to 4.5 billion euros of bonds including a new 5-year
bond and 20-year debt - the longest dated issue to be sold at an
auction since mid-2011. The sale is expected to go smoothly
after the the Greek parliament approved, as expected, austerity
measures needed to unlock vital aid and avert bankruptcy.
"Until we get more news on this U.S. fiscal situation core
markets are OK so we'll probably buy Bunds on dips," a trader
"But I don't think there's a huge position out there. We
have the ECB and the Spanish auction to get through. As much as
the ECB won't do anything today you've got to think that given
the way the data is going we're certaintly looking for a rate
cut before the end of the year."
The Bund future was last one tick up at 142.76
compared with 142.75 at Wednesday's settlement.