LONDON May 22 Bund futures rose on Wednesday,
tracking higher U.S. Treasuries overnight, as U.S. Federal
Reserve officials struck a dovish tone on the economy before the
market receives new insight into the central bank's thinking.
Investors will examine Fed Chairman Ben Bernanke's testimony
and minutes from the Fed's latest meeting later on Wednesday for
clues on when it might stop its ultra-loose monetary policy.
Two senior Fed officials on Tuesday dampened speculation
this might happen soon, playing down chances that the U.S.
central bank would signal a readiness to reduce its bond buying
at its meeting next month.
German Bund futures were 24 ticks higher at 144.57
but gains were seen limited before the issuance of a new 10-year
Bund later this session.
"At the end of the day it's all about Bernanke today," one
He said a recent rise in 10-year German yields should favour
the auction: "Down at these levels we are seeing a bit of buying
as we head to 1.40 (percent)."
German yields were 2.4 bps lower at 1.39