LONDON, May 15 (Reuters) - German Bund futures rose sharply when European markets opened on Friday, following an earlier move in US Treasuries, as traders said yields had started to once again catch the eye of investors after a three-week sell-off.
U.S. 10-year bond yields fell from a high of 2.29 percent on Thursday to touch lows of 2.20 percent during Asian trading, and opened on Friday at 2.21 percent.
German Bund futures also opened 40 ticks higher at 153.10, while 10-year bond yields were down 4 basis points at 0.68 percent in early trades.
Weak U.S. producer data that dampens the prospect of a near-term interest rate rise and relief after a successful 30-year U.S. Treasury bond auction both supported the rally, but traders said it was simply a rebound after the recent bond rout.
“Yields appear to have reached a level that is attractive to investors. Bunds should find a firmer footing after the sharp repricing and we expect that to carry into the weekend,” said Commerzbank strategist Rainer Guntermann. (Reporting by John Geddie; Editing by Anirban Nag)