German, Italian bonds surge after U.S. Fed keeps stimulus
LONDON, Sept 19
LONDON, Sept 19 (Reuters) - German and Italian bond futures jumped on Thursday after the U.S. Federal Reserve surprised markets by sticking with its $85 billion in monthly bond purchases.
Euro zone bonds were seen rallying across the credit spectrum, catching up with a surge in U.S. Treasuries overnight after the Fed, citing strains in the economy from tight fiscal policy, decided against trimming its monetary stimulus. Investors had been expecting the Fed to start reducing the size of the purchases after its policy meeting on Wednesday.
The Bund future was 153 ticks up at 139.35, its highest in two weeks, while Italian BTP futures were more than a full point up at 111.55.