German Bunds fall, euro rises after ECB holds rates

LONDON Thu Feb 6, 2014 8:02am EST

LONDON Feb 6 (Reuters) - German Bund and euro zone interest rate futures extended falls while the euro briefly pared losses on Thursday after the European Central Bank kept interest rates steady.

The euro trimmed earlier losses to hit $1.3530 immediately after the ECB announcement from $1.3511 beforehand. However, it quickly slipped back and last traded at $1.3495 with hedge funds selling on expectations of dovish comments from ECB President Mario Draghi in his post-meeting news conference.

Bund futures fell 39 ticks on the day to 143.68, from 143.92 just before the decision while Euribor futures headed lower across the 2014-2016 strip, pushing implied rates up.

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