Bunds extend losses before supply

LONDON: German government bonds extended losses on Wednesday before the sale of longer-dated German and French bonds.

Germany will sell two billion euros of July 2044 bonds after demand for the safe-haven paper picked up at a sale of 10-year Bunds last week.

Before that France will sell up to 7.5 billion euros of bonds with a maturity of up to 2035.

"We're just drifting lower before the auctions," a trader said.

"We expect it to be a volatile day before Bunds, and especially France, see a positive end to the month and the auctions well subscribed.

But the dealers who are going to take down that supply aren't going to be pushing the market up just yet."

German Bund futures were last 17 ticks lower at 141.37.