LONDON Nov 22 Bunds were steady on Thursday,
consolidating recent losses on the back of perceived improvement
in Greece's chances to secure a new aid tranche disbursement.
German Chancellor Angela Merkel induced some optimism in the
market by saying an agreement to release aid to Athens was still
possible next Monday when euro ministers meet, after Greece's
international lenders failed to reach a deal on Wednesday.
At 0703 GMT, Bund futures were 1 tick higher at
142.18, having fallen by 83 ticks in the past two sessions.
"We haven't got major news overnight so we call Bunds
unchanged ... (But) risk (assets) have got a good week, it's
generally just a better tone," one trader said, adding he
expected a Spanish debt auction to go smoothly.
Spain will sell 2.5-3.5 billion euros of three-, five- and
nine-year bonds later on Thursday. The funds raised would begin
covering financing needs for next year, which is expected to be
challenging for the recession-hit country that many expect will
eventually seek a bailout from its euro zone partners.
(Reporting by Marius Zaharia/editing by Chris Pizzey, London
MPG Desk, +44 (0)207 542-4441)