LONDON Jan 16 Bund futures held firm at
Wednesday's open with investors looking forward to a 10-year
bond sale by Germany that was expected to attract healthy
demand, aided by a recent rise in yields.
Overall, German bond prices have risen so far this week as
the desire to hold low-risk, liquid assets has been boosted by
U.S. wrangling over raising its self-imposed debt limit.
In the build up to the launch of Germany's new 2023 bond,
the Bund future was 3 ticks lower at 143.26.
The current 10-year Bund yields were expected
to draw in bidders at the auction having risen to attractive
levels relative to recent months. Yields rose as much as 23
basis points during early January before retracing slightly as
"The yield pickup and outright yield level closer to 1.60
percent again should attract real money accounts," Commerzbank
strategists said in a note.