LONDON (Reuters) - German and UK bonds pared losses on Wednesday after U.S. Federal Reserve Chairman Ben Bernanke said the bank still expects to curb monetary stimulus but left open the option of changing the plan if the economic outlook shifted.
Bund futures pared losses to trade down 2 ticks on the day at 143.67, having stood at 143.35 before the comments.
UK September gilt futures cut losses too and were last 62 ticks down on the day at 112.93, versus 112.82 beforehand. Sterling rose against the dollar to a fresh two-week high of $1.5260 (1.001 pounds), up from around $1.5200.
European shares extended gains after Bernanke’s prepared testimony, and were up 7.72 points, or 0.7 percent at 1,198.87.
Reporting by London Bonds desk; Editing by Emelia Sithole-Matarise