LONDON, July 22 German Bund futures rose at the
open on Monday, tracking overnight gains in U.S. Treasuries as
profit-taking hit Asian stocks, but Portugal remained in focus
after the president threw his support behind the ruling
Portuguese bonds were expected to extend last week's gains
after President Anibal Cavaco Silva on Sunday ruled out a snap
election and said he wanted the centre-right coalition to stay
in place to keep an international bailout on track.
This follows the collapse of "national salvation" talks on
Friday between the coalition and the opposition Socialists to
reach a deal on the country's bailout programme.
"The president who caused the most upheaval threw his
support behind the current government, and in the short term
this is slightly positive for Portuguese bonds as this support
for the coalition is better for market stability than the
alternative," said KBC strategist Mathias van der Jeugt.
The Bund future was last 8 ticks up at 144.30
compared with 144.22 at Friday's settlement.