EURO GOVT-Bunds pause for breath after Fed-fuelled sell-off
LONDON, June 21
LONDON, June 21 (Reuters) - German Bunds were little changed on Friday, pausing for breath after posting their biggest daily drop since March in the previous session on expectations of reduced monetary stimulus from the U.S. Federal Reserve.
Fed Chairman Ben Bernanke said on Wednesday the U.S. economy was expanding strongly enough for the central bank to begin slowing the pace of its bond-buying later this year, triggering a broad sell-off across financial markets.
"There have been huge moves, there have been huge repositionings, so maybe before the weekend things can come down a bit," Piet Lammens, strategist at KBC said.
German Bund futures were 11 ticks lower at 142.02, having fallen more than 100 ticks in the previous session.
"Today the calendar is very bare," one trader said. "With risk assets getting hit as hard as they are, then in a perverse way, it probably gives us a bit of a support at some point."