Bund futures fall on ESM banking license comments

LONDON: German Bund futures reversed opening gains on Wednesday after European Central Bank policymaker Ewald Nowotny was quoted as saying he saw grounds for giving the ESM euro zone rescue fund a banking licence.

"The headline saying Nowotny sees arguments for giving ESM a banking licence is putting a bit of pressure on Bunds," a trader said. "But we're in a period of thin markets and it's not going to take a lot to move markets. Spain is also under pressure so there's no relief there from the move lower in Bunds."

Bund futures were last 35 ticks lower at 144.68.