* German Bunds rise in tight ranges before Fed
* Lower-rated euro debt also little changed
* Fed seen leaving door open for data-dependent tapering
By Ana Nicolaci da Costa
LONDON, June 19 German Bund futures rose in thin
trade on Wednesday but kept to narrow ranges with investors
reluctant to take big bets before the outcome of a two-day U.S.
monetary policy meeting.
Comments by Federal Reserve Chairman Ben Bernanke last month
fired up speculation the U.S. central bank could soon curb its
asset buying, hurting equity and bond markets.
He is expected to announce later on Wednesday the Fed will
keep buying bonds at a monthly pace of $85 billion while holding
their options open to scale back the programme later this year
if the U.S. labour market continues to improve..
"Everyone is a bit cautious given there is not only
uncertainty to what Bernanke is going to say... but also how the
market will interpret any comments," Michael Leister, senior
interest rate strategist, at Commerzbank said.
German Bund futures rose 34 ticks on the day to
143.55, having seen their biggest daily loss since late May in
the previous session.
A 4 billion euro sale of 10-year German debt had little
market impact. It attracted bids worth 1.5 times the amount on
offer, slightly less than 1.6 at an auction in May.
Peter Schaffrik, head of European rates strategy at RBC
Capital Markets, said there was scope for German yields to rise
if the Fed only reiterated what he said on May 22.
Ten-year German bonds last yielded 1.55
percent, up around 40 basis points since the beginning of May,
mirroring an above 50 bps rise in equivalent U.S. Treasury
yields over the same period.
Lower-rated euro zone debt was also rangebound. Ten-year
Spanish yields were flat at 4.56 percent and the
Italian equivalent was 1.8 bps higher at 4.31