LONDON Dec 6 German Bund futures steadied on
Thursday with the lack of a break-through in U.S. budget talk
underpinning low risk debt before from a European Central Bank
policy meeting later in the day.
The ECB is likely to keep interest rates on hold on Thursday
but may offer clues on its policy path for next year with
updated forecasts likely to present a grim outlook for the euro
zone economy in 2013..
"The market will be looking for signs in terms of (ECB)
policy responses in early 2013," a trader said.
German Bund futures were up 5 ticks on the day at
Financial markets have been sensitive to any comments on
progress of U.S. talks to avert a fiscal crisis and U.S.
Treasuries firmed in Asian trading with little signs of progress
in Congressional talks on Wednesday.
Before the ECB meeting, investors were expected to easily
take up 3 to 4 billion euros of French supply. The bonds have
generally benefited from investors seeking some pick-up over
Germany whose yields are at ultra-low levels.