LONDON Feb 12 German Bund futures edged up at
the open on Tuesday as investors fretting about political
uncertainty in Italy and Spain propped up demand for low risk
Focus remains on peripheral euro zone bonds where trade has
been volatile over the past week on mounting concern about
former Italian Prime Minister Silvio Berlusconi's comeback in
polls before elections at the end of the month. In Spain, Prime
Minister Mariano Rajoy is facing calls to resign over a
corruption scandal, in which he denies any wrongdoing.
Bunds shrugged off news that North Korea likely conducted a
nuclear test, with focus on developments in the euro zone.
European Central Bank President Mario Draghi will be back in
the spotlight when he speaks to Spanish lawmakers later on
Tuesday to explain and defend the ECB's current monetary policy
strategy - an event which may gain prominence given heightened
concerns about the appreciation of the euro.
"(Draghi) might come up and give them (the Spanish
government) a pat on the back. But we still maintain that
(negative) stance on the periphery with Italian elections
getting closer," a trader said.
The Bund future was last 11 ticks up at 142.96
compared with 142.85 at Monday's settlement.