LONDON, July 18 German Bund futures edged up on
Thursday, extending gains made in the previous session after
Federal Reserve Chairman Ben Bernanke left the door open to
changing U.S. plans to reduce monetary stimulus.
In the first of two days of congressional testimony,
Bernanke stuck closely to a timeline to wind down bond buying,
but said nothing was set in stone.
Bund futures were last 12 ticks higher on the day
"Bunds are going to have a (firming) bias as Bernanke's
message is starting to come through," said Jan von Gerich, chief
analyst at Nordea.
Investors will also watch a no confidence vote against
Portugal's ruling coalition later in the day.
The motion is likely to fail, but markets will be on the
lookout for any signals sent by the three main parties, which
are holding talks on a broad deal to keep the country's bailout
programme on track.
Spain will sell 2-3 billion euros of bonds due 2016, 2018
and 2023 at around 0830 GMT. The small amount on offer should
ensure a smooth auction, despite renewed worries about Madrid's
investment grade status and a domestic corruption scandal
putting pressure on Prime Minister Mariano Rajoy.