EURO GOVT-Bunds rise on ECB's Coeure comments

LONDON Fri Jan 18, 2013 8:27am EST

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LONDON Jan 18 (Reuters) - German Bunds rose on Friday, with traders citing comments by European Central Bank board member Benoit Coeure that he did not expect short-term rates to be affected by ECB loan repayments.

Bund futures were last 40 ticks higher on the day at 143.16.

"We had a comment from ECB's Coeure saying something ... (like) he does not expect (ECB long-term loan) repayments by banks to affect the (euro overnight interbank) Eonia rate."

"The market was fearing that the withdrawal of liquidity would drive up Eonia rates. That's the reason people are buying back into the short-end, and also the Bund."

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