Bunds pause after hitting 6-week highs in previous session
LONDON, July 19
LONDON, July 19 (Reuters) - German Bund futures paused on Friday, after hitting their highest level in six weeks in the previous session, and trade was expected to remain range-bound.
German government bonds have been underpinned in recent days by Federal Reserve Chairman Ben Bernanke's testimony to Congress where he said the central bank's plans to scale back asset-purchases later this year were not set in stone and depended on the strength of the economy.
"There is still room for the Bund to (rise) slightly further. I think the 1.50 (percent) area is a target the market should reach soon," Patrick Jacq, European rate strategist at BNP Paribas said.
He was referring to the 10-year German bond yield which was last at 1.51 percent.
"We are entering the summer period where liquidity is more difficult to find than in other periods, so with lower liquidity and probably slightly higher volatility, very liquid markets are favoured and the Bund is a very liquid market."
German Bund futures were five ticks higher at 144.28, having risen for three consecutive sessions. It hit its highest in six weeks at 144.35 on Thursday. (Reporting by Ana Nicolaci da Costa/editing by Chris Pizzey, London MPG Desk, +44 (0)207 542-4441)
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