Bond Futures Go Slightly Higher

The European Central Bank (ECB) is meeting with the US Federal Reserve on Thursday to discuss ways by which the governments belonging in euro zone can narrow down its borrowing costs.

The region is currently battling through an economic crisis that is affecting the rest of the world and Australian investors will be looking for signs from this meeting for securing their investments, as doubts about ECB’s actions linger.

Analysts say that bond futures may meet a slightly higher price if investors are going to “play it safe.”

Meanwhile, the German Finance Ministry says that it may not be necessary to oversee a   European Stability Mechanism (ESM) fund for bailing out cash-strapped European governments, and this further eroded investor confidence for the ECB.

According to industry sources, some concerns arise over the possibility of ECB not delivering enough to support peripheral bonds for this Thursday’s meeting.

As of Australian eastern time this Wednesday morning, the September 10-year bond futures were trading at 97.045 from 96.995 (or 3.005 percent) while the September three-year bond futures were at 97.520 from 97.480 (or 2.520 percent).