here we go again: asx futures: -20, page-15

(IGM)[EUROPEAN DEBT MKT UPDATE] [BUNDS] fell heavily in the 30 min build up to the latest test of investor peripheral...
[EUROPEAN DEBT MKT UPDATE] [BUNDS] fell heavily in the 30 min build up to the latest test of investor peripheral appetite which took the shape of the Spanish bond auction. Players were obviously preparing for the worst, selling the German 10yr futures down from the session 131.72 peak to 131.33 (-48 ticks) in quick order but just failed to retest the 131.31 intra-day base. However, the Spanish sale, although unlikely to be a complete failure (too much at stake) went very respectably which prompted some quick short covering of Bunds to 131.54 (see our 8:44GMT update for full auction outturn). [GILTS] fell from 126.12 to 125.92 (-37 ticks) before edging back up to 126.00. [STIRS] are little moved, the front Short Stg strip is +2/flat whilst Euribor is -1.5/-2 ticks.