Bunds pare gains on Barroso euro bond comments

LONDON: German Bunds pared gains and the euro rose against the dollar on Wednesday after European Commission President Jose Manuel Barroso said the body would soon present options for the introduction of common euro zone bonds as part of a solution to the euro zone's debt crisis .

December Bund futures were last 3 ticks higher at 137.76, reversing further from a session high of 138.26 on the comments. Benchmark 10-year yields were a basis point lower at 1.782 percent .

"We've rallied overnight on the French bank downgrades but we're coming off a bit on the back of Barroso's comments ... Whether Barroso is the man you would expect to put this forward is one thing but we're trading headline to headline at the moment," a trader said.

The euro rose versus the dollar to $1.3666 , from around $1.3630 before the announcement.

Copyright Reuters, 2011