LONDON: Bund futures rose early on Thursday, tracking gains in US Treasuries in the Asian session, while little relief was seen for Greek bonds, especially at the front end of the curve.
At 0603 GMT, the Bund future was 25 ticks higher at 122.24. The yield on the ten-year US T-note fell about 3 basis points in the Asian session from highs hit on profit-taking and supply pressure in late US trade.
"Treasuries are pretty firm and that gives us a reasonable bid on the opening, so we should edge higher in line with them," a trader said.
The Federal Reserve said on Wednesday it would complete the purchase of $600 billion in bonds in June and that it would keep its balance sheet steady. It also reiterated plans to keep interest rates at rock-bottom levels for an extended period. Greek government bond yields were set to rise further, due to continuing speculation the country will have to restructure its debt. Two-year yields rose 2 percentage points to nearly 27 percent on Wednesday.
"There's no real turnaround in the sentiment. Bid/offers are very wide; some people get stopped out of positions. If you're talking about restructuring you really don't want to be there," the trader said.
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