EURO GOVT-Bunds edge up as ECB to stay accommodative
LONDON, June 26
LONDON, June 26 (Reuters) - German Bund futures edged up at the open on Wednesday with the market supported by comments by European Central Bank officials the previous day that monetary policy in the euro zone would remain accommodative.
The comments by ECB President Mario Draghi and his French colleague Benoit Coeure were helping limit losses in Bunds after the U.S. Federal Reserve said last week it would reduce monetary stimulus, sparking a sell-off in global bond, equity and commodity markets.
"If the data remains strong then maybe it's (Fed stimulus pullback) going to happen but I don't think we are in any way close to stimulus withdrawal in places like Europe or the UK at the moment," a trader said. "On that basis we'll probably continue to favour Bunds over everything."
The Bund future was last 7 ticks up at 140.61 compared with 140.54 at Tuesday's settlement.
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