EURO GOVT-Bunds up with Treasuries after auction boost

LONDON, Dec 10 (BestGrowthStock) – German government bonds opened
higher on Friday as U.S. Treasuries, the main driver for Bunds
this week, bounced back after a strong auction of 30-year bonds.
The sale of $13 billion of reopened 30-year U.S. bonds was
done at a yield below the level trading on the open market,
indicating investors bid aggressively for the debt, with strong
demand particularly from foreign buyers.

“Treasuries had a great auction but they sold-off so much
going into it that Bunds are not going to get as much benefit as
you might think,” said a trader.

At 0706 GMT, March Bund futures (FGBLc1: ) were 30 ticks
higher at 125.25.
The contract marked record highs in September of 134.77 but
has sold off sharply since then, partly on concerns on how much
it would cost Germany if more euro zone countries need financial
assistance.

Ten-year yields (DE10YT=TWEB: ) were 1.5 basis points lower at
2.924 percent.

Bonds issued by highly-indebted euro zone countries
underperformed on Thursday as investors awaited developments in
the European Union’s efforts to quell the sovereign debt
problems of some of its members. EU leaders meet next week.

“The view is that the first quarter of next year is going to
be brutal for the periphery,” said the trader.

“The split in Europe seems to be getting more severe.”

EURO GOVT-Bunds up with Treasuries after auction boost