German government bonds

 German government bonds are opening little changed Tuesday
ahead of key event risks that includes Spain's T-bill auctions, German
ZEW business survey and comments from ECB President Mario Draghi. June
Bund futures hit fresh all-time highs yesterday at 140.56 on FTQ buying
amid increased anxiety surrounding the eurozone debt crisis, with Spain
re-entering the eye of the storm as the market makes concession ahead of
the 2-yr & 10-yr bond auctions Thurs for up to E2.5bln. Spain 10-yr
yield yesterday rose to 6.13% -- the highest level since Nov 30, 2011,
on continued concerns about Spain's banking sector and increased doubts
that the Spanish government is able to cut its budget deficit. This
follows comments from the economy minister de Guindos, who hinted  Spain
risked a second consecutive quarterly GDP contraction of 0.3%, taking
the country into official recession territory. Spain Q1 provisional GDP
data is due on April 30. Attention turns to Spain's 12-/18-month T-bill
auctions, and whilst yields are higher than previous sale the focus is
on how much the Tesoro sells and the level of demand.