LONDON, March 22 German Bund futures pushed
higher on Friday as Cyprus scrambled to find a solution to a
funding crisis which could see the island become the first euro
zone state to exit the currency bloc.
The European Union has given Cyprus until Monday to raise
the 5.8 billion euros needed to secure a 10 billion euro
international lifeline or face the collapse of its financial
Tensions over Cyprus drove German 10-year Bunds to their
lowest level this year around 1.34 percent, with some traders
expecting further falls if the crisis on the Mediterranean
island remains unresolved.
"Yesterday we started off with people thinking there was
going to be some sort of solution. Obviously those hopes faded
over the course of the day," a trader said.
"We're remaining constructive on Bunds. We still think 1.25
(percent in 10-year German yield) is a viable target for the
market. The market is fairly well underpinned at the moment."
The Bund future was last 31 ticks up at 144.77,
compared with 144.46 at Thursday's settlement.