German government bonds are trading higher Tuesday, taking cue from weakness in stocks and unsubstantiated market talk relating to ‘large demonstrations’ and ‘unusual troop movements’ in Beijing. The talk is a military coup has taken place and is largely on microblogs in mainland China. Earlier traders said that the rumour apparently started after Maoist websites were shut down, ostensibly for “maintenance”. Bund yields have so far struggled to break back below 2.00% yield level, with focus still on the 200-day moving average at 2.12%. Volumes are seen thin ahead of Federal Reserve Chairman Ben Bernanke comments later today, where he will deliver the first of four lectures at the George Washington School of Business — the other dates are March 22, 27 and 29. In terms of supply, there are no sovereign bond auctions scheduled in the eurozone today, but T-bill issuance comes in thick and fast — Greece to sell 13-week T-bills for E1.0bln, Spain sells 12-month-/18-month T-bills for up to E5.5bln and EFSF sells six-month bills for E2.0bln.
EasyForexNews Research Team