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EURO GOVT-Bunds rise, Spain banking concerns weigh on sentiment
October 22, 2012 / 6:21 AM / 5 years ago

EURO GOVT-Bunds rise, Spain banking concerns weigh on sentiment

LONDON, Oct 22 (Reuters) - Bund futures opened higher on Monday on worries that European banking support will only apply to new problems and after weaker-than-expected earnings from a batch of major U.S. companies.

Last week’s rally in Spanish and Italian bonds came to a halt on Friday after Germany said the euro zone’s rescue fund would not take over liability from member states such as Spain for past bank rescues.

At 0610 GMT, Bund futures were 14 ticks higher at 140.25.

Spanish Prime Minister Mariano Rajoy secured backing for his austerity drive in a vote in his home region of Galicia over the weekend.

European officials and analysts have said that Rajoy had wanted to get regional elections behind him before asking for international aid, a move which would activate the European Central Bank’s bond-buying programme.

Another regional election is scheduled in Catalonia, on November 25.

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