September 17, 2012 / 6:05 AM / 5 years ago

EURO GOVT-Bunds pause with post-Fed sell-off seen overdone

LONDON, Sept 17 (Reuters) - German government bonds edged up at Monday’s with the previous session’s sharp sell-off after the U.S. Federal Reserve announced new stimulus measures seen having gone too far, too fast.

German government bond yields hit 11-week highs on Friday after the the Fed said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the jobs market and extended its pledge to keep interest rates near zero.

German Bund futures were 19 ticks higher at 138.93.

“Bunds collapsed on Friday, it was very heavy but I think we might need to pause,” a trader said.

“The markets are very optimistic at the moment.”

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