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LONDON May 30 German Bund futures fell on Friday, tracking an overnight decline in U.S. Treasuries after Federal Reserve policymaker Esther George said rate rises should be steeper than many in the market expected.
The Kansas City Federal Reserve Bank President reiterated her view that the Fed should start to raise rates shortly after it ends its current round of bond purchases.
German Bund futures were 25 ticks down at 146.68, leaving cash German 10-year yields 2 basis points higher at 1.32 percent.
"It's all Fed-related. Fed language was a bit hawkish overnight. That's the main thing weighing on Bunds - George saying rates may need to rise faster than the market is pricing in," a trader said. (Reporting by Emelia Sithole-Matarise; editing by Tom Pfeiffer)
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