German government bonds are opening lower Tuesday amid risk-on trades overnight after Alcoa reported better than expected revenue, depsite negative warnings on its earnings after the market close. Alcoa kicked off the earnings season by posting a loss of 18 cents per share in Q4 on a continuing operations basis – in line with street estimates, but better than expected revenue of $5.99bln, up 6% from a year ago and ahead of expectations of $5.7bln. Focus now turns to JPMorgan earnings on Friday. Bunds also weighed ahead of supply, where Austria, UK, US and the Netherlands plans to sell bonds and T-bill sales are due from Greece and Slovenia. The Greek T-bill sale auction is likely to be closely watched after German Chancellor Merkel and French President Sarkozy both reiterated on Monday that the second bail-out fund would not be released to Athens, until an agreement had been reached with private bond holders regarding the restructuring of Greek debt. Also eyed are comments from Merkel & IMF Chief Lagarde who meet in Berlin at 1900GMT. EU Rehn speaks on Eurobonds to European parliament group.
EasyForexNews Research Team