LONDON, Sept 18 (Reuters) - German Bund futures fell sharply at Thursday’s open reacting to projections from the U.S. Federal Reserve for steeper interest rate rises in the coming years.
The euro zone benchmark mirrored a similar move in U.S. Treasuries late Wednesday shortly after the economic assessments were unveiled at the end of a two-day meeting in Washington. The Bund future opened 41 ticks lower at 147.99.
“The statement itself was fairly dovish but it is the steeper than expected rate increases that are really unnerving the market,” said one trader. (Reporting by John Geddie; Editing by Sudip Kar-Gupta)