LONDON Feb 13 Bund futures opened slightly
higher on Wednesday with investors cautious ahead of an auction
that will test investors' appetite for Italy's long-term debt
before elections later this month.
Italian debt has been under pressure in recent weeks as a
comeback in opinion polls by former Prime Minister Silvio
Berlusconi's party raised the prospect of a fragmented
parliament that could hamper the next government's reform
There was at least a pause in the sell-off on Tuesday,
however, with traders citing domestic investors snapping up the
The government is aiming to sell up to 3.5 billion euros of
three-year bonds and between 1 and 1.75 billion euros of 15- and
30-year bonds, together with five-year floating rate CCTeu
certificates. The 30-year paper is the first on
offer at a regular auction since May 2011.
"The focus is on the Italian auction, but given how well
Italy traded yesterday I think they will be alright," one trader
At 0706 GMT, Bund futures were 8 ticks higher on
the day at 142.63.
Germany also plans to sell 5 billion euros of two-year