June 17, 2013 / 6:11 AM / 4 years ago

EURO GOVT-Bunds dip on firmer equities, focus on Fed

LONDON, June 17 (Reuters) - German Bund futures fell at the open on Monday as Asian equities rebounded but losses were seen capped before a U.S. Federal Reserve meeting later this week which could shed light on its stimulus programme.

European shares were predicted to open marginally firmer. Asian shares extended Friday’s gains after U.S. data showed that the economic recovery was not strong enough to warrant an imminent pullback in the Fed’s stimulus.

Concern the Fed could start reducing its debt purchases has roiled financial markets over the past few weeks, driving German 10-year yields to their highest levels in three months.

“Asian stocks are up a bit and that’s pulling us down,” a trader said. “It looks to be another day of choppy trade depending on what’s going on in equities but I don’t think Bunds will go anywhere much before the Fed.”

At 0703 GMT, the Bund future was 31 ticks down at 143.55 compared with 143.86 at Friday’s settlement.

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