EURO GOVT-Bunds reverse early losses on Fed stimulus talk
LONDON, Sept 10 |
LONDON, Sept 10 (Reuters) - German Bund futures rose in choppy early trading on Monday, reversing an initial fall after the open, supported by strong demand in the U.S. Treasury market where investors were betting on fresh monetary stimulus.
The combination of quantitative easing exepctations in the United States, fuelled by weak jobs data released last week, and ongoing concerns around euro zone struggler Greece helped support a bid for safe-haven German debt.
Bund futures rose to a session high of 140.92, up 27 ticks on the day having early fallen as low as 140.42.
"The non-farm payrolls and what's happening in Greece they seem not to agree on the budget cuts so that's supporting Bunds," a trader said.
Greece's foreign lenders have rejected parts of a nearly 12-billion-euro austerity package prepared by the government, Greek officials said on Sunday as the two sides resumed talks after a month-long hiatus.
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