LONDON Feb 5 German Bund futures were little
changed on Tuesday, pausing for breath after renewed worries in
the euro zone spurred the contract's biggest daily rise since
December in the previous session.
Bund futures were flat at 142.64 one day before a
German auction. Austria will sell bonds maturing in 2019 and
2022 later in the day.
"The correction may go somewhat more," Piet Lammens,
strategist at KBC said.
Political uncertainty in Spain and Italy arrested the recent
rally in lower-rated debt on Monday and investors would keep a
close eye to see whether the momentum persisted.
A good indication of how concerned markets are about a
corruption scandal in Spain, which led to calls for Prime
Minister Mariano Rajoy to resign, will be demand at a Spanish
bond sale on Thursday.
Investors will also look at data from the U.S. vast services
sector due later on Tuesday to gauge the monetary policy outlook
after recent releases have mostly painted an upbeat picture of
the world's largest economy.