LONDON Dec 13 German Bund futures erased
earlier losses on Thursday after investors reassessed the
implications of the latest policy move by the U.S. Federal
The Fed said it would buy $45 billion in Treasuries each
month and will expand its purchases to include five-year notes
from the current seven-, 10- and 30-year bonds.
The Fed also took the unprecedented step of saying it would
keep interest rates near zero until the jobless rate falls to
6.5 percent, well below its current level, so long as inflation
"We shouldn't have sold off as much as we did on the U.S.
news," a trader said.
Bund futures were last 9 ticks higher on day at
145.35, having traded as low as 144.87 earlier in the session.