RTRS:EURO GOVT-Bunds edge up as ECB speculation grows
(Reuters) - German Bund futures edged higher on Tuesday with investors wary of taking big positions before the European Central Bank's meeting on Thursday, expected to give details of a new bond-buying scheme to help deeply indebted euro zone states.
Shorter-dated Italian and Spanish debt got a boost late on Monday after ECB President Mario Draghi was quoted as telling European lawmakers that the ECB's purchases of sovereign bonds with maturity of up to three years would not breach the European Union's taboo of directly financing euro zone economies.
"Curves might be steeper after comments yesterday coming out unofficially from Draghi that they may be prepared to buy bonds up to three years' maturity," a trader said.
"But people are waiting to see the whites of the eyes of the ECB meeting and you've got some supply this week from Spain to get through so I don't see markets racing away from here."
The Bund future was last 10 ticks up at 143.65 compared with 143.55 at Monday's settlement.