LONDON Jan 10 German Bund futures were steady
on Thursday before a Spanish debt auction that is expected to
find strong demand and a European Central Bank meeting where
interest rates are seen kept on hold.
Stronger-than-expected Chinese trade data pushed Asian
equities higher and could weigh on safe-haven Bunds in the early
part of the session, traders said.
Spain plans to issue 4-5 billion euros of mainly short-dated
debt, which falls within the remit of an ECB bond-buying
programme that could be activated if Madrid asks for a bailout
from its euro zone partners.
The ECB is expected to keep its key refinancing rate
unchanged at a record low of 0.75 percent and its deposit
facility rate at zero percent as the euro zone economy has shown
some signs of stabilising recently.
However, investors will be looking for any clues from
President Mario Draghi on the likelihood of future rate cuts.
At 0706 GMT, Bund futures were 1 tick up at 143.58.
"The ECB might be a bit more upbeat so chances of a rate cut
might recede. You could argue its a negative (for Bunds) but I'm
not convinced. It's all about future data," the trader said.