LONDON, July 17 (Reuters) - German Bund futures were up in tight ranges on Wednesday with investors reluctant to place big bets before testimony by Federal Reserve Chairman Ben Bernanke to Congress.
Bernanke is expected to balance a message of enduring central bank support for the U.S. economy with a reminder that the Fed’s ultra-easy policies cannot last forever.
Concerns over when the U.S. central bank may start withdrawing monetary stimulus has unnerved financial markets in recent months.
German Bunds were 10 ticks higher on the day at 143.79. The market also absorbs German 10-year bonds later this session.
“In the U.S., yields have come off their highs but not very much, so I suspect the market is still a bit short going into that speech which would mean that if Bernanke is very dovish ... then we can get further reaction down in yield terms of the Treasuries and by association also for the Bund,” Piet Lammens, strategist at KBC said.