German debt erases early gains

LONDON: German bonds wiped out an early rally on Tuesday to stand flat on the day having hit technical resistance as thin market volume made for choppy trade with many investors waiting for fresh signals on a possible Spanish bailout.

"There seems to be a bit of resistance around the 141.65/70 level but it's a very range-bound market between 141.20-141.70," a trader said.

"We're just waiting for more news on Spain and with the possibility of a downgrade, people are happy to buy Bunds on dips"

Bund futures were last at 141.42, up 2 ticks on the day having earlier risen as high as 141.69.