LONDON, March 5 |
LONDON, March 5 (Reuters) – German Bund futures edged lower at the open on Tuesday with concern over possible new elections in Italy after its inconclusive vote last week offset by the European Central Bank’s bond-buying backstop.
Italy could be inching toward another election within months after centre-left leader Pier Luigi Bersani, who won a lower house majority for his grouping but could not win the Senate, issued an ultimatum to anti-establishment leader Beppe Grillo to support a new government or return to the polls.
Italian bonds came under renewed selling pressure on Monday as the political uncertainty dragged on but the ECB’s yet-to-be tested bond-buying backstop prevented a deeper sell-off.
“It’s stabilised for now and we are waiting to see whether they can cobble together any form of government but it can spiral so I don’t see why Bunds should sell off,” a trader said.
Bund futures were last 21 ticks down at 145.30 compared with 145.51 at Monday’s settlement.
EURO GOVT-Bunds slip as investors mull Italy political impasse
No comments:
Post a Comment