LONDON Jan 22 Bund futures were steady on
Tuesday, with investors likely to stick to the sidelines in
anticipation of a new 10-year Spanish bond.
Investors would look to the ZEW investor sentiment index for
the latest gauge on the health of the euro zone's largest
economy after data last week showed Germany's economy contracted
in the fourth quarter.
Market participants would keenly look out for Spain's first
new 10-year benchmark since November 2011, after a government
source told Reuters on Monday the sovereign was testing the
market for a syndicated sale.
German Bund futures were flat at 142.90.
"Basically what we are seeing is very volatile ups and downs
with no straight bullish or bearish mood," Charles Berry, trader
at Landesbank Baden-Wurttemberg said.
"People are standing on the sideline and my impression is
people don't know how to (read) the spread tightening from those
non-core countries to Germany - is it a stable situation or is
it just a short-lived situation?"