"Everything is bundled into one trade, risk on or risk off and its rumour after rumour," a trader said.

"We're moving around in a one point range, that would normally be 20 ticks, and there's zero liquidity so any small moves in the currency or in equities are going to cause big moves."

The Bund future was last at 132.97, up 20 ticks, having briefly turned flat. The contract earlier reached a session high of 133.77.

Italian and Spanish 10-year government bond yield spreads over German debt recovered from their widest levels of the day and were last flat at 393 bps and 401 bps respectively.

Copyright Reuters, 2011