LONDON Jan 17 Bund futures crept higher at the
open on Thursday, but the rise was limited as investors remained
reluctant to make big bets before a Spanish debt sale.
Spain plans to tap the market for up to 4.5 billion euros in
bonds due to mature in 2015, 2018 and 2041. Investors will be
keenly watching to see if the country can keep up a good
fundraising momentum and avoid a sovereign bailout this
Demand is expected to be strong as sentiment towards riskier
debt improved thanks to abundant liquidity at the start of the
new year and the central bank's promise, made in 2012, to
support the bonds of struggling sovereigns that seek help.
"Today is all about supply," one trader said. "I think it
will be fine. There is appetite for risk out there. I can't see
what the rationale is other than money being put to work."
German Bund futures were 14 ticks higher at 143.51,
extending a three day rise, as European stock index futures
pointed to a weaker start to Thursday.
A sale of French bonds is also expected to meet decent
appetite as they continue to offer a pick-up over those issued
by safe-haven counterpart Germany.