LONDON: German Bund futures rallied to a session high on Wednesday after the completion of a bond auction gave renewed impetus to a rally in government debt sparked by the re-election of Barack Obama as US President.
Following a 3.3 billion euro five-year German bond sale the December Bund futures contract hit a peak of 142.41, up 32 ticks on the day and well above the low of 141.77 seen in early trade.
"There's been a few buyers of the dips and decent buying of five-year futures after the auction, as well as some extension trades as two-year yields turn negative again," a trader said.
"The market had priced out a lot of quantitative easing (in the US) and now it's being fully priced back in, that's very supportive and Bunds will follow that."
Comments
Comments are closed for this article.