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EURO GOVT-German Bunds extend Fed-induced selloff
June 24, 2013 / 6:12 AM / 4 years ago

EURO GOVT-German Bunds extend Fed-induced selloff

LONDON, June 24 (Reuters) - German Bund futures fell to their lowest since October 2012 on Monday, extending last week’s sharp falls after the Federal Reserve sent a clear signal of its readiness to curb asset purchases later this year.

Abundant central bank liquidity has been behind a rally in shares this year and contributed to capping yields of top-rated bonds. The Fed’s announcement last week that it may slow the pace of its bond buying hit financial assets across the board.

Bund futures were last 46 ticks lower on the day at 140.93, having fallen as low as 140.80 at the start of the trading session. German debt often moves in tandem with U.S. Treasuries as the two assets are seen as safe havens.

“It is Treasuries-led,” one trader said.

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