LONDON, May 30 (Reuters) - German Bund futures rose on Thursday as global stock markets came under selling pressure, with bond investors reluctant to place big bets before a sale of Italian paper.
Italy will offer up to 5.75 billion euros of bonds maturing in 2018 and 2023.
Short-term Italian borrowing costs rose at an auction on Wednesday for the first time since March. The country's long-term yields are expected to edge higher at the sale later this session but should still meet healthy demand, traders said.
"There was a concession yesterday so I assume it will be fine. I think people are a bit long Italy, there might be a bit of supply indigestion around," he said.
Bund futures rose 25 ticks higher at 143.66 as global equities fell and U.S. Treasuries clawed back losses in the previous session.
The recent rise in German and U.S. yields came after Federal Reserve Chairman Ben Bernanke said last week the central bank may decide to cut its bond purchases in the coming few policy meetings if data shows the economy is gathering pace.
Against that backdrop, investors will keep a close eye on U.S. releases this session, including gross domestic product numbers and initial jobless claims.