LONDON, July 22 (Reuters) - German Bund futures rose at the open on Monday, tracking overnight gains in U.S. Treasuries as profit-taking hit Asian stocks, but Portugal remained in focus after the president threw his support behind the ruling coalition.
Portuguese bonds were expected to extend last week’s gains after President Anibal Cavaco Silva on Sunday ruled out a snap election and said he wanted the centre-right coalition to stay in place to keep an international bailout on track.
This follows the collapse of “national salvation” talks on Friday between the coalition and the opposition Socialists to reach a deal on the country’s bailout programme.
“The president who caused the most upheaval threw his support behind the current government, and in the short term this is slightly positive for Portuguese bonds as this support for the coalition is better for market stability than the alternative,” said KBC strategist Mathias van der Jeugt.
The Bund future was last 8 ticks up at 144.30 compared with 144.22 at Friday’s settlement.