Bunds erase losses after ECB's Constancio comments

LONDON: German Bund futures erased losses on Monday with traders citing reports of comments from European Central Bank Vice President Vitor Constancio which prompted increased bets of an interest rate cut.

"The ECB's tone has been pretty dovish...they are telling us that they are lining up for a rate cut," a trader said.

Bund futures were flat at 146.03, bouncing off a day's low of 145.72 hit earlier after an Italian presidential deal raised prospects of a two-month political impasse in the country.