Thursday, 06 September 2012 18:08
LONDON: US bond prices fell in European trade on Thursday with investors looking to the European Central Bank to shed more light on its latest debt crisis-fighting plans later in the day.
Treasuries followed German Bunds lower but their losses were expected to be limited as traders weighed the risk the ECB could undershoot expectations and provide only scant details of its widely-anticipated bond-buying scheme. Uncertainty also remains on when Spain will ask for aid from the euro zone's rescue funds, a condition for the ECB bond-buying.
Safe-haven government bonds lost some of their appeal on Wednesday after a media report said the ECB could buy unlimited amounts of short-dated bonds to help lower the borrowing costs of Spain and Italy, which are bearing the brunt of the crisis.
Two central bank sources told Reuters, however, that while ECB President Mario Draghi is likely to deliver a framework for new bond purchases, he ...