LONDON, Jan 15 (Reuters) - German Bund futures edged up on Tuesday, after comments from Federal Reserve Chairman Ben Bernanke suggested the U.S. monetary policy may stay loose for longer than some expected.
Bernanke painted a cautiously optimistic outlook for the U.S. economy, but gave no clear hints the central bank will back away from its loose monetary policy any time soon, despite speculation that it will do so this year.
The comments weighed on the dollar and gave a lift to U.S. Treasuries, a safe-haven asset which often moves in tandem with triple-A rated German debt.
However, traders said Bernanke’s stance was surprising only for a small part of the market - those investors who believe the U.S. economy will pick up considerably this year. Therefore, room for a rise in Bunds was limited.
“He was always going to err in that direction,” one trader said.
At 0710 GMT, Bund futures were 10 ticks higher at 142.87.