EURO GOVT-Bunds hit session low in choppy trade

LONDON, Nov 20 (Reuters) - Bund futures erased early gains
to hit a session low on Friday in trading made choppy due to an
absence of major economic data.

Earlier, a fresh wave of speculation about the risk of a
default on Ukraine's sovereign and sovereign-guaranteed debt had
boosted demand for German Bunds, the euro zone's benchmark.

"The fact that the Ukraine story is looking like a non-event
is probably behind the selloff from the high," said a bond
trader in London.

"It's a very rumour driven volatile day given a lack of
data."

December Bund futures FGBLc1 hit a low of 122.30, down 18
ticks from Thursday's settlement close, having earlier risen as
high as 122.64. At 1415 GMT, the contract was at 122.37, down 11
ticks on the day.

The two-year Schatz yield EU2YT=RR edged up about 1 basis
point on the day to 1.314 percent, while the 10-year Bund yield
EU10YT=RR also climbed nearly 1 basis point to 3.276 percent.
(Reporting by Ian Chua)