September 13, 2012 / 8:26 AM / 5 years ago

EURO GOVT-Bunds rise as bargain hunting kicks in

LONDON, Sept 13 (Reuters) - German Bund futures extended gains on Thursday as some investors doubtful about the efficacy of the euro zone’s latest crisis-fighting plans saw the previous day’s sharp fall as an opportunity to buy the safe-haven debt at cheaper levels.

“I thought the sell-off was probably worth a couple of points and then you get back in,” a trader said.

“There’s probably some fast money taking profit on shorts and other people looking to re-establish some longs. We’re still in a low rates environment... and by no means out of the woods in Europe yet.”

Bund futures rose as much as 39 ticks on the day to 139.94, but that was still less than half the lossses they suffered on Wednesday after the German Constitutional Court backed the euro zone’s new bailout fund, keeping the bloc’s crisis-fighting plans on track.

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