EURO GOVT-Bunds reverse lossses as markets readjust to ECB

LONDON, March 8 Fri Mar 8, 2013 3:48am EST

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LONDON, March 8 (Reuters) - Bund futures reversed early losses on Friday, with some traders saying that the selling in German bonds after the European Central Bank monetary policy meeting had been overdone.

The ECB gave no strong hints on further interest rate cuts on Thursday, disappointing some in the market that had expected the bank to strike a more accommodative tone.

German Bund futures were last up 8 ticks on the day at 142.91, having opened in negative territory.

"I don't think (ECB President Mario) Draghi said anything different to what he said in February so nothing significantly changed in the message but the market may have played to the short side and is now edging up," a trader said.

He said the move should be contained before a key U.S. jobs number due later in the day.

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