Approfittando dei tassi bassi anche Francia e Spagna hanno seguito la Germania e han venduto oggi vagonate di carte da cu...opsss del debito, ovvio che poi il Bund ne risenta
Euro debt-Yields inch up, profit-taking sets in
By Ana Nicolaci da Costa
LONDON, Nov 18 (Reuters) - Euro zone government bond yields inched up on Thursday, pulling away from multi-month lows as the market absorbed more than 7 billion euros of new bond supply and traders took profits on recent sharp price gains.
The December Bund future hit new contract-highs at 118.21 on the back of a strengthening euro but struggled to break above that level, encouraging profit-taking.
France sold 5.17 billion euros of 5-year bonds, while Spain auctioned more than 2 billion euros of 10 and 30-year debt and analysts said the supply also weighed on the market. France sells inflation-linked OATei bonds later in the session.
"We are still very close to all-time highs in the Bund and it is just struggling to advance further from here as we have a lot of supply to be digested today and probably yesterday's (German) Bobl (auction) is still washing through," said Christoph Rieger, interest rate strategist at Dresdner Kleinwort Wasserstein in Frankfurt.
At 1225 GMT, the benchmark 10-year Bund yield <EU10YT=RR> was up 1.6 basis points at 3.77 percent, above Tuesday's 17-month lows at 3.727 percent which it matched earlier in the session.
The December Bund future <FGBLZ4> was down 12 ticks at 117.82, off its contract-high hit earlier.
The euro peaked at $1.3074 <EUR=> versus the greenback, on expectations that nations at an upcoming Group of 20 meeting would tolerate a weaker dollar. This boosted bonds as analysts fear a strong euro may undermine economic growth and keep interest rates low for several months.
U.S. DATA EYED
Attention turned to U.S. economic data.
"Definitely the currency is the main driver, particularly at the short end. If you look at the Euribor they looked rich already but if the currency keeps rallying the euro short-end will just keep rallying as well," said Rieger.
"Apart for that, we will have to wait for U.S. data later today, (jobless) claims as always but also the Philly Fed. These are probably the two key events lined up."
U.S. jobless claims are out at 1330 GMT, followed by U.S. October leading economic indicators at 1500 GMT and the Philadelphia Federal Bank's November business activity survey at 1700 GMT.
The March Euribor <FEIH5> future, a market barometer of euro zone rate expectations, was up 0.5 basis point at 97.715, off last Friday's 2-1/2 week high at 97.765.
The interest rate sensitive two-year Schatz yield <EU2YT=RR> was little changed at 2.41 percent, but off this week's 7-month low of 2.336 percent.
Data showed German producer prices rose 3.3 percent year on year, their fastest annual rate since June 2001, compared with a 2.7 gain forecast in a Reuters poll. This briefly weighed on bond prices but was soon overshadowed by a strengthening euro.
"The German PPI (producer price index) is very on the high side compared to forecasts so that is probably limiting the gains this morning ... but obviously the euro is strong again, so that is a positive," said the London trader.
The European Central Bank Governing Council meets in Frankfurt but no interest rate announcements are scheduled. Any announcement about other issues is expected at 1330 GMT.
Bunds were underperformed Treasuries, with the 10-year yield gap 1 basis point narrower at 43 basis points. The 10-year euro swap spread was 1 basis point wider at 13 basis points.
