LONDON Jan 17 Bund futures reversed early gains in choppy trade on Thursday, with investors betting on a strong Spanish bond auction later in the day.
Bund futures were last 11 ticks lower on the day at 143.26, having traded in a 143.27 - 143.62 range earlier in the session. Italian and Spanish bond yields were slightly lower.
"It's just decent demand for peripherals. Spanish and Italian bonds are doing well after the strong auctions this week. The Spanish (sale later on Thursday) also looks like it's going to go well. The bonds are trading well ahead of the supply," a trader said.