LONDON, April 24 Safe-haven Bund futures opened
lower on Wednesday, as the Italian president was expected to
nominate a new prime minister, ending the deadlock created by
February's inconclusive election.
The move would ease near-term political uncertainty in
Italy, a country in dire need of reforms to boost growth and cut
high debt levels.
The nomination is expected to curb appetite for low-risk
German debt just before an auction of 2 billion euros of 30-year
bonds, although rising expectations the European Central Bank
will cut interest rates later this year may limit losses.
The German Ifo business sentiment indicator will be closely
watched for any sign of economic weakness that the ECB might use
as an argument to cut rates.
"It looks like we're getting more movement in Italy -
they're expected to name a new prime minister. But the Ifo will
be key as we're now looking for (an ECB) move in May," one
Bund futures were last 19 ticks lower on the day at
145.90. They rose as high as 146.77 on Tuesday, the highest
since June 1, when it reached an all-time high of 146.89.