LONDON, July 25 (Reuters) - German Bund futures reversed opening gains on Wednesday after European Central Bank policymaker Ewald Nowotny was quoted as saying he saw grounds for giving the ESM euro zone rescue fund a banking licence.
“The headline saying Nowotny sees arguments for giving ESM a banking licence is putting a bit of pressure on Bunds,” a trader said. “But we’re in a period of thin markets and it’s not going to take a lot to move markets. Spain is also under pressure so there’s no relief there from the move lower in Bunds.”
Bund futures were last 35 ticks lower at 144.68. (Reporting by Marius Zaharia and Emelia Sithole-Matarise; Editing by Emelia Sithole-Matarise)