LONDON Feb 25 German Bund futures held near
one-month highs on Monday with uncertainty over the outcome of
the ongoing Italian elections expected to keep demand for
low-risk assets high.
The Bund future was 9 ticks lower at 143.53,
hanging on to most of the sharp gains made late last week when a
combination of weak data and election nerves pushed the contract
out of its trading range to the highest level since Jan. 25.
The market was expected to remain cautious until later in
the day when the first exit polls emerge from Italy. The
election has been closely contested, with a surge in protest
votes adding to investors' concerns that the ballot may result
in a weak and fragmented government.
"We're sitting here waiting for Italian news. The question
is how much of the protest vote has there been ... you can argue
the more of it that there is, the more likely there's going to
be split houses or weak coalitions," a trader said.
Italian debt futures were 16 ticks higher on the
day at 111.98.