German Bunds fall after U.S. Fed minutes
LONDON Aug 22 (Reuters) - German Bund futures fell on Thursday after minutes from the Federal Reserve did little to calm investor concerns the U.S. central bank could start curbing bond purchases as soon as next month.
The much-anticipated minutes of the Fed's July monetary policy meeting provided few clues on the potential timing for a reduction.
But 10-year U.S. yields rose to fresh two-year highs and equivalent German yields touched their highest since March 2012 in early trade as investors determined the Fed was still on track to taper its asset-buying programme soon.
The focus now turns to surveys on euro zone manufacturing for August as investors try to gauge whether the region's recovery has lasted into the second half of the year.
"Clearly the U.S. rate market took the FOMC (Fed) minutes on the hawkish side. There are some selling pressures coming from the U.S. - this is weighing on core markets in Europe as well," Patrick Jacq, European rate strategist at BNP Paribas.
"At the end of the day whatever the timing is ... the Fed is gradually removing quantitative easing, which means that we are going to see higher rates in coming years."
German Bund futures were 37 ticks lower at 139.77. Ten-year German yields were 2.8 basis points higher at 1.91 percent having risen as high as 1.925 percent.
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