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EURO GOVT-June Bunds hit new contract highs
April 5, 2012 / 9:59 AM / 6 years ago

EURO GOVT-June Bunds hit new contract highs

LONDON, April 5 (Reuters) - German Bund futures hit contract highs on Thursday as Spanish and Italian debt came under pressure after a weak Spanish auction the previous session.

June Bund futures hit a contract high of 139.23, up 81 ticks on the day. On a continuous contract basis the levels were the highest since late February.

Spanish 10-year bond yields were 13 basis points higher at 5.85 percent, with the Italian equivalent up 15 basis points at 5.52 percent.

Shorter-dated paper underperformed with two-year yields for both countries up just under 20 basis points.

However, traders said price moves were being exaggerated by thin liquidity ahead of the long Easter weekend in Europe.

“We have seen small selling from domestic accounts in Italy but nothing from Spain,” a trader said.

“It’s the last day before the long weekend, it’s very very illiquid and I would assume that the spread widening comes from screen prices moving around and no real trade.”

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