Bunds dip on hopes for stronger EMU firepower

LONDON: German Bund futures extended losses to session lows in thin volumes on Monday after a magazine report said Germany might be ready to do a deal to bolster the euro zone's firepower by combining its two bailout funds for a limited time.

"There is this article circulating about the firepower of the EFSF and Bunds are leading (US Treasuries) down," a trader said. "The reason why it's moving the market now is that people realised this is the main news going into the US (market) open."

Bund futures fell as much as 45 ticks on the day to 136.94 with German 10-year yields five basis point up at 1.923 percent.