Bunds erase gains on Merkel comments

LONDON: German Bund futures fell on Wednesday as politicians stepped up efforts to come to a deal to release aid for Greece after a meeting on Monday failed to reach agreement.

German Chancellor Angela Merkel told a closed-door meeting of lawmakers that lower interest rates and an expanded EFSF rescue fund could fill Greece's financing gap.

"The news (overnight) was a bit disappointing, but Merkel comments this morning seem pretty supportive," one trader said.

German Bund futures were last 3 ticks down on the day at 142.35, having risen as high as 142.64 earlier.