LONDON Feb 11 German Bunds rose on Monday, with
market participants saying a sell-off in lower-rated debt had
further room to run due to ongoing political uncertainty in
Spain and jitters before an Italian vote this month.
Analysts were not expecting much new from a euro zone
finance ministers meeting later in the day, where the strength
of the euro is likely to be discussed before a G20 meeting at
the end of the week.
A peripheral bond rally paused last week as Spanish Prime
Minister Mariano Rajoy faced calls to step down over corruption
allegations and another scandal involving Monte dei Paschi bank
fuelled political uncertainty before Italian elections.
German Bund futures were 10 ticks higher at 142.93.
"We need the Italian elections behind us and we need some
comfortable news about the corruption charges in Spain before we
can get a sustained outperformance of these two markets," Piet
Lammens, strategist, at KBC said.
But he expected the sell-off to be temporary over the
Trade could be thinned with most Asian bourses, including
those in Japan, China, Hong Kong, Singapore and South Korea,
closed for the Lunar New Year holiday.